Israel's Knesset passes budget, stabilizing Netanyahu's government amidst protests

On March 25, 2025, Israel's parliament, the Knesset, passed a state budget that ensures Prime Minister Benjamin Netanyahu's government remains intact amid ongoing public unrest regarding the war in Gaza. The approval came after intense pressure from coalition members, particularly ultranationalist and ultra-Orthodox parties, who had significant demands included in the funding package. The budget, proposed by Finance Minister Bezalel Smotrich, includes allocations totaling 755.9 billion shekels with a deficit ceiling of 4.9%. This financial plan is critical as it not only prevents a political crisis but also aligns with political needs wherein Netanyahu faces widespread criticism and protests concerning military actions and domestic issues, particularly affecting the middle class. Despite efforts by protesters to disrupt the vote, who blocked access to lawmakers and voiced their concerns regarding the ongoing hostages held in Gaza, the coalition managed to secure passage with a vote of 66 to 52. Opposition leaders have condemned the budget as corrupt, stressing that it does not address the needs of the Israeli middle class, who are struggling amid rising living costs. Political analysts suggest that while this budget passage may grant Netanyahu a temporary reprieve from political instability, it could also influence his approach towards a ceasefire in the ongoing war, as he seeks to appease his ultranationalist allies while also face growing public dissatisfaction over security and legal leadership decisions.