Israel’s parliament approved the country’s $270 billion annual budget on Monday after an overnight session, allowing Prime Minister Benjamin Netanyahu to stay in office and likely complete his term until the fall.
The vote passed 62-55, despite missile sirens warning of Iranian launches toward Jerusalem during the session.
The budget had to be ratified before 1 April to prevent automatic early elections, though Netanyahu retains the option to call polls sooner if he wishes.
Passage of the record-setting budget increases the likelihood that his government will serve its full four-year term, despite declining popularity following the Hamas attacks on 7 October 2023.
Opposition leaders criticised the plan for directing additional funds to Israel’s ultra-Orthodox communities amid soaring costs from the ongoing war with Iran and the country’s recovery from the two-year Gaza conflict.
Opposition leader Yair Lapid called the allocation “the greatest theft in the state’s history,” while former Prime Minister Naftali Bennett described it on X as a “nocturnal heist.”
Anger centred on a last-minute amendment that added $250 million for ultra-Orthodox schools.
Critics have also highlighted the community’s refusal to allow young men to serve in the military, despite Israel’s growing demand for soldiers.
Military service is mandatory for most Jewish citizens.
Far-right Finance Minister Bezalel Smotrich defended the budget, saying it “takes care of all Israeli citizens, without exception.”
The plan increases defence spending by 20 per cent to $45 billion due to the ongoing conflict with Iran, forcing cuts in other government ministries.
The vote took place in the parliament’s auditorium near a bomb shelter rather than the plenum, reflecting heightened security concerns.
While Israelis broadly support the war effort, recent polls indicate Netanyahu and his coalition have gained little political advantage. Tensions persist as Iran launches missiles daily, conflict with Hezbollah in Lebanon escalates, and disruptions to Persian Gulf oil supplies affect global markets.
Delaying elections until autumn may allow Netanyahu to capitalise on wartime momentum, although the vote will coincide with the anniversary of the 7 October attack, Israel’s deadliest. Meanwhile, wartime civilian guidelines have been extended by a week, covering part of the Passover holiday starting Wednesday.
