Today, the Knesset Finance Committee approved transfers amounting to over NIS 300 million out of the coalition funds, that is the funds allocated at the behest of the coalition parties. This is still only a small part of the total amount approved by the government for political budgets two weeks ago, which was NIS 3.6 billion, a sum that could yet increase. The rest of the money awaits legal approvals and for transfer as part of the 2025 budget process.
The transfer approved today are mainly for the Ministry of Settlements and National Missions, headed by Orit Strook of Minister of Finance Bezalel Smotrich’s Religious Zionist party. The ministry received NIS 268 million of the coalition funds.
In addition, the Ministry of Jerusalem Affairs and Jewish Heritage, headed by Meir Porush (United Torah Judaism) received NIS 90 million. NIS 6.3 million were transferred to the Ministry of Heritage, which was head by Amihai Eliyahu until his Otzma Yehudit party withdrew from the government, and is now in the custody of Haim Katz (Likud).
Alongside the distribution of coalition funds, and following the failure to complete the legislative process intended to increase state revenues, the Ministry of Finance is pushing for an across-the-board cut in the base budget of government ministries. The aim is to save almost NIS 3 billion in order to meet the deficit target in the 2025 budget, which is 4.9% of GDP.
Meanwhile, as reported by "Globes", a legal opinion by outgoing Ministry of Finance legal counsel Asi Messing is liable to torpedo a large part of the funds intended for Torah institutions. Messing demands that NIS 400 million should be cut from the NIS 1.7 billion earmarked for Torah institutions, on the grounds that it is not legally possible to support those who avoid conscription to the IDF. He bases his opinion on a ruling by the High Court of Justice stating that "in the absence of a legal basis for deferring military service, the legal basis for state support for those who avoid conscription also falls."
The state budget is due to reach a final vote in the Knesset by the end of this month. If the budget is not approved by then, the Knesset will be dissolved, and the country will go the polls.
Published by Globes, Israel business news - en.globes.co.il - on March 17, 2025.
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