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Israeli Finance Minister plans 2025 spending cuts to fund Gaza war
Israel-Gaza War Updates
2024-09-03 | 11:38
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Israeli Finance Minister plans 2025 spending cuts to fund Gaza war
Israeli Finance Minister Bezalel Smotrich said on Tuesday the 2025 state budget will feature steep spending cuts as the government tries to balance fiscal responsibility with a need to finance Israel's ongoing war with Hamas in Gaza.
The minister has been under pressure from the Bank of Israel and investors seeking clarity on fiscal policy for next year. The central bank has been calling for spending cuts and tax hikes or other ways to bring in more revenue. Smotrich has said that during a war it was wrong to raise taxes.
Speaking at a news conference, Smotrich outlined only his main focus points while formulating the budget, which he said would be ready for a cabinet vote in early October and an initial parliamentary vote in mid-November. Full approval by lawmakers would be at the end of December, he said.
"We are in the longest and most expensive war in Israel's history with expenses of 200 to 250 billion shekels ($54-$68 billion)," Smotrich said.
"We are not limiting war spending and we will support the war effort until victory," he said. "Without victory, there will not be security and without security there will no economy."
Reuters
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