Dec 17, 2024, 7:30 PM
Dec 14, 2024, 11:08 AM

Grandma's budget Christmas grotto stuns grandkids and internet

Highlights
  • Israeli lawmakers voted 59-57 to pass the 2025 budget, highlighting coalition fractures.
  • The budget includes significant cuts and a target deficit of 4.4% of GDP amid rising war costs.
  • Political divisions may threaten the coalition's stability and the government's future if the budget isn't finalized by March 31.
Story

In Israel, lawmakers narrowly approved the 2025 state budget in an initial vote amidst growing tensions within Prime Minister Benjamin Netanyahu's coalition. The Knesset voted 59-57 in favor of the wartime austerity budget, which highlights the existing fractures within a coalition comprised mainly of ultra-Orthodox and far-right parties. The approval followed a rebellion by a coalition partner, Israeli Security Minister Itamar Ben-Gvir, who demanded the firing of the attorney general. His opposition, along with six seats from the ultranationalist Otzma Yehudit party, indicates a shift in loyalty towards independence for their faction. This situation has led to public disputes between Ben-Gvir and Finance Minister Bezalel Smotrich regarding budgetary and governmental responsibilities. The tension extends further back as Netanyahu has sought to fortify his coalition with additional support from opposition members. A critical aspect of the budget is its proposed spending cuts and tax increases totaling 37 billion shekels to control a rising deficit that threatens the country's financial stability. The budget targets total spending of 756 billion shekels for the year, while defense expenditures are set at 108 billion shekels, reflecting the heightened costs associated with ongoing military engagements. Significant pressure is being placed on the government to finalize the budget, as a failure to approve it before the end of March could lead to new elections, thus unearthing fresh political uncertainties. Discussions to amend the budget will continue as it moves to financial committees for further consideration, pushing the timeline for complete approval to at least January, which underscores the urgency of political negotiations within this coalition framework.

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