Benny Gantz, chairman of the state camp, appealed to Prime Minister Benjamin Netanyahu on Sunday evening to cancel the cabinet meeting scheduled for tomorrow in order to approve the budget updates for 2023 – or cancel the planned allocation of coalition funds.
Hundreds demonstrate against coalition funds in Bnei Brak (Archive) // Moshe Ben-Simhon
In a letter sent to the Prime Minister this evening, Gantz wrote: "I reiterate my demand to divert all possible coalition resources and funds that have not yet been exhausted to fiscal year 2023, and accordingly to 2024, immediately, to the needs of the war and its derivatives. If the meeting takes place and the budget remains in place, the state camp faction will vote against the proposed budget and consider its next steps."
Despite public criticism and opposition from senior finance officials, the update to the 2023 budget, which is scheduled to be approved tomorrow by the government, will not include diverting all coalition funds for this year in favor of the war. Two weeks ago, Finance Minister Smotrich agreed to divert only NIS 1.6 billion out of NIS 2.5 billion – coalition funds that have not yet been realized in 2023. The NIS 900 million that Smotrich is not willing to give up is earmarked for Haredi education, the Judea and Samaria Settlement Division, Jewish culture, Jewish identity, assistance to local authorities in preserving Area C of Judea and Samaria, and more.
Millions of shekels that Smotrich is not willing to give up are intended for the benefit of ultra-Orthodox education (illustration), photo: Oren Ben Hakon
Two weeks ago, the Bank of Israel wrote to Finance Minister Bezalel Smotrich demanding that he freeze coalition funds for 2024 as well, following an ongoing "iron sword" war, but so far his appeal has fallen on deaf ears. "The scope of the proposed budget cut currently stands at NIS 4 billion, and is not considered large, but one that could strengthen the public's commitment to fiscal adjustment in respect of the costs of the war," the statement said. "To the extent that the government assesses that this is the maximum possible cut at this stage of the year, it is important that it decides already when approving the addition to the 2023 budget to cancel some of the expenditures planned for 2024, even though the plan is that the main discussion about next year's budget will be postponed slightly."
It added: "An examination of the budget items indicates possible reductions of NIS 8-10 billion next year. Moreover, since a significant part of the payments in 2023 for coalition agreements will make it very difficult to cut those items in 2024 and beyond, it is advisable for the government to declare a halt to these expenditures already in the current budget."
As first reported by Israel Hayom, the government budgets government ministries with huge budgets, while in wartime it is necessary to reduce or close these ministries. Among other things, as part of the coalition agreements, it was stipulated that each year the government would transfer three million shekels to the Jewish Law Unit in the Ministry of Justice, 12 million shekels during the term, in addition to the unit's budget. However, an examination of the diary of the unit's director, Dr. Michael Vigoda, reveals scant activity. Vigoda claimed that the diary did not reflect his activity in writing opinions and research, but refused to give them.
Gantz and Smotrich, Photo: Oren Ben Hakon
Following the publication, last Thursday at a meeting at the Kirya in Tel Aviv regarding the new budget expected to be passed by the government this week, disagreements emerged between Finance Minister Bezalel Smotrich and Minister Benny Gantz regarding coalition finances. Although Smotrich announced a 70% across-the-board cut in coalition funds, Gantz argued that the fact that this was a cut from the planned budget additions shows that the cut is not enough and that there is still a need to cut funds for Avrachim, Jewish heritage and more.
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