Cabinet approves 7% budget cut to fund teachers' pay hike

Israel's cabinet this morning unanimously approved a 7% across-the-board budget cut of all ministries in order to finance the wage agreement signed with the teachers last week. Among other things over NIS 1 billion will be cut from the Ministry of Defense budget, NIS 177 million from the Ministry of Welfare, NIS 250 million from the Ministry of Internal Security, NIS 39 million from the Ministry of Foreign Affairs, NIS 23 million from the police and prisons services, NIS 14 million from the Ministry of Transport and a long list of cuts. The teachers' agreement will cost the state an extra NIS 4.5 billion annually until 2026.

Despite harsh criticism of the Ministry of Finance's insistence that the cuts would include social services, Meretz and Labor ministers did not oppose the cuts despite promising to vote against them yesterday. The minister said they had changed their minds after being assured that the 2022 budget would not be affected.

Published by Globes, Israel business news - en.globes.co.il - on October 27, 2022.