Israel’s parliament on Monday passed its annual budget after an overnight session, allowing Prime Minister Benjamin Netanyahu to remain in office and complete his government’s term until the fall.
The budget had to be approved before April 1 to prevent automatic early elections, although Netanyahu retains the option to call elections sooner if he chooses.
Opposition leaders criticized the budget for increasing funding to Israel’s ultra-Orthodox communities amid soaring costs from the ongoing war with Iran and the country’s continued recovery from a two-year conflict in Gaza. Opposition leader Yair Lapid called it “the greatest theft in the state’s history,” while former Prime Minister Naftali Bennett described it on X as a “nocturnal heist.”
Opposition anger focused on a last-minute amendment allocating an extra $250 million to ultra-Orthodox schools. Critics have also voiced frustration at the community’s refusal to allow young men to serve in the military, despite Israel’s growing need for soldiers. Military service is mandatory for most Jewish citizens.
Far-right Finance Minister Bezalel Smotrich praised the budget, saying it “takes care of all Israeli citizens, without exception.”
Netanyahu’s government is in the final months of its four-year term, with elections required by the end of October. Passage of the $270 billion budget – Israel’s largest ever – makes it more likely he will complete his term, despite declining popularity since the Hamas attacks on October 7, 2023. The budget includes a 20% increase in defense spending to $45 billion due to the ongoing war with Iran, forcing cuts in other government ministries.
The vote passed 62-55, despite interruptions from missile sirens warning of Iranian launches toward Jerusalem. The session was held in the parliament’s auditorium, closer to a bomb shelter, rather than in the plenum.
While Israelis broadly support the war, recent polls suggest Netanyahu and his coalition have not gained political advantage. Tensions continue as Iran fires missiles daily, the conflict with Hezbollah in Lebanon escalates, and disruptions to Persian Gulf oil supplies affect the global economy.
Delaying elections until the fall may allow Netanyahu to capitalize on wartime momentum, though the vote will coincide with the anniversary of the October 7 attack, the deadliest in Israel’s history. Meanwhile, wartime guidelines for civilians have been extended by a week, covering part of the weeklong Passover holiday starting Wednesday.