NIS 727 billion budget expansion passes in Knesset as Israel-Hamas War continues

The Knesset approved in its first reading a second additional budget for the fiscal year 2024, the Knesset plenum spokesperson announced on Thursday evening.

The decision was driven by the ongoing Israel-Hamas War, according to the budget proposal, which has introduced significant uncertainty and prolonged military engagement beyond initial estimates.

The new additional budget was approved, with 57 members voting for and 51 members voting against the proposal, and will be sent to the Finance Committee for review.

The proposal outlines an additional budget totaling NIS 727.4 billion, consisting of NIS 524.32 billion for the regular budget, allocated for routine government operations and public services, and NIS 203.08 billion for the Development and Capital Account, designated for long-term investments and infrastructure projects.

Additionally, the proposal raises the limit set for the 2024 fiscal year’s budget by NIS 3.35 billion.

The first additional budget, which was based on the expectation that the intensity of the conflict would reduce by June 2024, has proven insufficient due to the extended fighting, according to the proposal.

As a result, the government has reportedly identified a need for increased civilian expenditures to address the ongoing impacts of the war, with the second budget aiming to address the extended conflict’s financial impact.

While addressing the financial implications of the Israel-Hamas War, the budget was also aimed at ensuring continued support for affected civilians and adapting to the ongoing security situation, the proposal noted.

'Everything on the working class'

Opposition Leader Yair Lapid criticized the budget, saying, "Where is the money coming from? The government presents this budget supplement with good intentions, but they don’t tell you where the money is coming from.”

He further emphasized that the reservists and middle class will be the ones to fund the new budget proposal, stating, “They are imposing everything on the working public.” He further drew criticism of the current government stressing it “repeatedly… destroys the Israeli middle class.”

“The country is heading for bankruptcy,” Lapid warned.

“The very fact of opening the budget a second time is a failure,” National Unity leader Benny Gantz stated in response to the proposal. He further emphasized that the government’s survival is the reason for “increasing the deficit and harming Israeli citizens.”

Gantz also commended the Israeli public, saying it has “sustained” the economy as “a nation full of volunteer spirit and creativity, by people who open their homes and hearts, and by patriotic investors who believe in our future.”

“This nation deserves a brave government that fights for every available shekel for its citizens and respects taxpayers' money," concluded Gantz.