Economic, Finance Ministries settle dispute on budget, Barkat to support bill

Economy Minister Nir Barkat settled his dispute with the Finance Ministry over the amended state budget and will vote in favor of it in its second and third readings, he said on Sunday.

"I'm pleased to announce that we have reached agreements with the Finance Ministry for an addition of NIS 240 million for the benefit of aiding businesses on the periphery and for economic growth during the war, just as I asked," he said. "Alongside victory on the battlefield, I have set a goal of victory in the economic sector. Our duty is to save the businesses in the periphery and in the areas of the fighting to preserve our economy which will come out of the war stronger."

Barkat also expressed his gratitude to Prime Minister Benjamin Netanyahu, Finance Minister Bezalel Smotrich, the Budgets Department in the Finance Ministry, and Economy Committee chairman MK David Bitan.

Opposing the amendment to the 2023 budget

The economy minister had been strongly opposed to the amended 2023 budget since it was voted on by the government cabinet. He also didn't attend the first reading of the bill in Knesset so that he wouldn't have to vote against it because he said the original version was massively damaging to Israel's economy.

Aside from Barkat and Defense Minister Yoav Gallant, who was unable to attend the first reading in Knesset last week, the whole coalition supported the budget, but threats of opposition did not end on Sunday with Barkat's support.

In the Welfare Committee on Sunday, Likud MKs Hanoch Milwidsky and Eti Atiah threatened to oppose the budget if it didn't include full reimbursement for employers' contributions for their employees' needs.

Meanwhile, the Finance Committee meetings preparing the budget for its second and third readings have stalled after Smotrich clashed with the government's legal counsel over funds intended for security in the West Bank.

Since the money was intended to be used from the coalition funds, the government's legal counsel claims that the Finance Ministry has to go through the proper channels for approving coalition funds before the budget is passed in Knesset while Smotrich claims he had already done so before the war began.

"There will be no discrimination on my watch," Smotrich was quoted as saying by Israel Hayom. "The residents of Judea and Samaria will not be ninth-rate citizens. When I approved NIS 1.5 billion for the local authorities, no one said a word, but when it's about Judea and Samaria, suddenly it's a problem. I have asked [Finance Committee chairman MK Moshe] Gafni to stop the meetings until we find a solution."