Although the Budget Department proposed a huge cut of NIS 8 billion in coalition funds to finance the war, Minister Smotrich approved a cut of only NIS 1.6 billion. However, it should be noted that according to the Attorney General's instructions, any coalition transfer must be approved by the government, and the state camp has veto power over transfers for almost anything not for the purpose of fighting.
Noam Rivkin Fenton/Flash90
Finance Minister Smotrich sent a letter yesterday to his ministry's management, summarizing three weeks of staff work and announcing cuts in coalition funds and ministries' budgets, ahead of the submission of the war budget for 2023.
The letter detailed sources from the budget that embody a cut of about NIS 4 billion, the diversion of NIS 1.6 billion from the remaining coalition funds in 2023 in favor of strengthening the home front and civilian expenditures, and an increase in expenditure by NIS 9 billion per budget. This is in addition to an additional NIS 22 billion that will be allocated to the defense budget for combat expenses.
It was also reported that immediately after the completion of the amendments to the 2023 budget, the government and the Knesset will prepare a new budget and an economic plan for 2024, which include new priorities and accelerating reforms to help the economy return to a growth path as soon as possible.
Benny Gantz, Photo: Eyal Margolin - Ginny
According to Finance Minister Bezalel Smotrich, "Now is a time of war, creating a war budget framework that will provide flexibility to quickly address the needs of the civilian war is the most professional and correct step now. This has also come up in many consultations we have held over the past month. The deep cut in coalition funds and ministries' budgets is a necessary step, and I have no doubt that the members of the government understand the magnitude of the hour."
Smotrich added: "We will increase the deficit in a measured manner, thereby creating a balance in budget sources between internal and external sources. We will continue to conduct ourselves on the one hand with an expansive policy that will provide a safety net for the citizens of Israel, but with budgetary responsibility on the other. This is an important message to the economies of the world that despite the war crisis, we are acting responsibly, maintaining borders and not increasing the budget by increasing the deficit exclusively.
Smotrich also thanked the Director General of the Ministry and the heads of the Ministry of Finance departments for the intensive work over the past month to provide the financing tools for all war efforts on the front and home front. According to him, a professional and broad response to both government ministries and citizens is in everyone's interest.
He concluded the letter with the words: "A strong home front enables a strong front, and this is part of the war effort that will, God willing, grant victory to the State of Israel."
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