Knesset approves 2025 state budget

The 2025 state budget has received final approval by the Knesset plenum. Despite the coalition disputes, it was passed in the second and third readings with a large majority of 66 MKs in favor and 52 MKs against. This was exactly a week before the deadline set by law for approving the budget, which would have led to the dissolution of the Knesset and new elections.

The votes on the budget were held with protests taking place near the building, as convoys of vehicles attempted to block access to the building, and six protesters were arrested. Knesset Speaker Amir Ohana opened the budget vote by calling for “the perpetrators to be brought to justice,” as he put it, who were demonstrating for the release of the hostages held by Hamas.

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The state budget, which was approved nearly three months into the fiscal year, includes a framework of about NIS 620 billion for government spending.

Compared with budgets passed before October 7, 2023, spending has ballooned by more than NIS 100 billion, mainly in defense spending, and is based on a relatively high planned fiscal deficit of 4.9%, alongside the heavier burden on citizens through a variety of taxes intended to increase the Ministry of Finance’s coffers.

Arrests outside the Knesset

The bigger drama was actually taking place outside the Knesset. Many police officers, along with members of the Knesset Guard, acted against the protesters on, and the incident swiftly escalated into arrests with cars blocking access to the building towed away. Otzma Yehudit MKs Almog Cohen and Amichai Eliyahu, Minister of Heritage, were seen entering the Knesset through side entrances.

For the government, this is the fifth budget passed since the beginning of its term in November 2022, amid changes necessitated by the war and the challenges of evacuating residents.

Unlike previous budgets, this time several key items were approved even earlier. This was the package of taxes, most of which have already come into effect, totaling NIS 24 billion. In addition, unlike the original budget proposal, the version approved today makes no mention of closing non-essential government ministries or cutting coalition funds.

Published by Globes, Israel business news – en.globes.co.il – on March 25, 2025.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.