Israel’s 2025 state budget was narrowly passed in an initial vote by lawmakers, despite a rebellion by one of Prime Minister Benjamin Netanyahu’s coalition partners calling for the removal of Israel’s attorney general. The vote of 59-57 in the Knesset highlighted divisions within the coalition that relies heavily on ultra-Orthodox and far-right parties.
Israeli Security Minister Itamar Ben-Gvir and his Otzma Yehudit party voted against the budget, leading to tensions with Finance Minister Bezalel Smotrich. Ben-Gvir has been advocating for the dismissal of Attorney General Gali Baharav-Miara, citing opposition to judicial system reforms and support for an independent inquiry into Israel’s handling of a cross-border incident in 2023 led by Hamas.
Ben-Gvir stated that his faction would no longer adhere to coalition positions and would act independently. He urged the government to dismiss the attorney general to advance its policies. In response, Smotrich accused Ben-Gvir of endangering the right-wing government’s stability during a time of war.
The budget for 2025 entails a total spending of 756 billion shekels ($210 billion) with a deficit target of 4.4% of GDP. The budget includes spending cuts and tax increases to manage the deficit amid rising war costs. Defence spending is set at 108 billion shekels for the coming year.
There are concerns over the budget’s approval process, with potential revisions expected in Knesset committees before full approval likely in January. Failure to pass the budget by March 31 would trigger new elections.
