The Israeli government approves the amended 2024 budget amid the war on Gaza 

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On Monday, the Israeli government approved the state budget for the year 2024, amid sharp disagreements between ministers over a number of items related to financial deductions from their ministries’ budgets.

The Israeli Broadcasting Authority said, “Monday, the government approved the amended budget proposal for the year 2024, adding about 55 billion shekels ($14.86 billion) to the defense budget; The budget proposal also included about 9 billion shekels ($2.43 billion) for the reserve recruitment program”.

According to the Israeli Broadcasting Authority, “In addition, billions of shekels will be allocated to strengthen companies that care for the displaced, the property tax will increase by three billion shekels, and the budget of local authorities receiving the displaced will increase.”

The amended state budget will amount to 582 billion shekels ($157.3 billion), with a total increase of 70 billion shekels ($19 billion), compared to the base budget approved in May 2023.

According to the Globes website, which specializes in the Israeli economy, stated, following the approval of the amended budget, the deficit is expected to reach a high level of 6.6% of GDP.

The Finance Ministry was forced to make concessions to approve the amended budget, when ministers who opposed the reduction, and threatened not to support the budget on Sunday night, received consolation compensation in personal meetings with Prime Minister Benjamin Netanyahu, according to Globes website, without giving further details.

The main battles today revolved around cuts in ministries’ budgets.

The Ministry of Finance announced a 3% reduction, before it rose at the last minute to 5%, to meet the needs of war expenses.

The Globes website added, “No special battles were recorded over explosive issues, such as reducing coalition funds or closing unnecessary government offices, because they weren’t on the agenda”.

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