Today (Wednesday) the Ministry of Finance published the budget proposal for 2025 that will be raised for approval by the government tomorrow. The framework for government expenditure (including repayment of government debt) is NIS 744 billion, NIS 17 billion more than in the 2024 budget.
After repayment of debt amounting to NIS 161 billion next year, the framework for government spending will be NIS 583 billion. This is almost the same as the 2024 budget framework, and even slightly lower, since the government recently breached the 2024 budget framework by some NIS 3 billion to finance continued provision of accommodation for residents of northern Israel displaced by the war.
A comparison with the previous draft budget shows that at least one of the Ministry of Finance’s proposed measures has been dropped, namely a change in the method of measuring properties for the purposes of arnona (local property tax), which would have raised arnona payments in the major cities sharply. On the other hand, the reduction of tax benefits on advanced training funds remains in the Ministry of Finance’s plans for the time being, despite assessments that it would ultimately be dropped, after the meeting between Minister of Finance Bezalel Smotrich and Histadrut (General Federation of Labor in Israel) chairperson Arnon Bar-David ended inconclusively.
Under the budget proposal, the Ministry of Defense budget will be NIS 102 billion, more than that of any other ministry. The proposal does not yet include the recommendations of the Nagel Committee reviewing the defense budget, which could result in it becoming even higher.
Published by Globes, Israel business news - en.globes.co.il - on October 30, 2024.
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