Smotrich: Israel is about to announce its 2024 war budget | Economy

Israeli Finance Minister Bezarel Smotrich said the cabinet is set to approve the 2024 war budget next Thursday after ministers approved financial support worth 9 billion shekels ($2.5 billion) for reservists.

Smotrich added in a joint statement with the Prime Minister today Benjamin Netanyahu And the Minister of Defense Yoav Galante “Reservists and their families are a priority for the State of Israel, and they are the backbone of the 2024 budget we will present this weekend.”

Israel ratified the deal last year before launching its aggression against Ali Gaza Strip budgets for 2023 and 2024, but the war in Gaza has severely damaged the government's public finances, requiring budget adjustments and additional spending.

he agreed israel parliament The Israeli parliament last month approved a special war budget for 2023 worth 30 billion shekels ($8.33 billion) to help finance the war and compensate those affected by the operation.al aqsa floodsled by the Palestinian Resistance Movement Qassam Brigade The military wing of the movement (agitation) October 7.

A spokesman for Smotrich said a budget vote would likely take place Thursday but did not provide further details.

The Treasury said the war could cost at least another 50 billion shekels ($14 billion) by 2024, with its budget deficit nearly tripling to 10% of gross domestic product if fighting continues until next February. Around 6%.

Opposition

Two days ago, Treasury professionals proposed closing 10 unnecessary ministerial offices, and Smotrich expressed opposition.

Then the Leader of the Opposition updated Yair Lapid Demands that the budget of the government coalition agreement be transferred to the 2024 budget to cover war costs, including the establishment of a special fund costing 10 billion shekels proposed by opposition leader Yair to compensate reserve forces Lapid.

In view of the war in Gaza, the economic crisis and the stagnant labor market, the 37th Israeli government, composed of 31 ministries, faces many internal challenges such as social, political and economic. The coalition government consists of 6 members. Political parties: Likud, Torah Judaism and Shas, Religious Zionism, Jewish Greatness and Noam.