Knesset approves controversial 2025 budget: Netanyahu's victory or massive public betrayal?

With a total value of NIS 755 billion ($205 billion), the budget was approved by a vote of 66-52, a significant milestone for the Israeli government.

Prime Minister Netanyahu took to social media to announce the achievement, stating, “We passed the budget. We’re moving forward.” His government’s approval of the budget marks a crucial step in stabilizing Israel's financial and political landscape.

Finance Minister Bezalel Smotrich hailed the budget as a “victory budget” for both Israel’s economy and defense. He emphasized the strategic nature of the budget, calling it “a war budget” with hopes that it would ultimately serve as the “victory budget” for Israel’s security in the future.

However, the budget has sparked fierce opposition from lawmakers, particularly from Yair Lapid, the leader of the opposition. Lapid condemned the budget, referring to it as “the greatest robbery in the history of the country,” criticizing the government for cutting public services while maintaining generous funding for Charedi institutions. The budget includes record defense spending of NIS 110 billion ($29 billion), additional financial support for IDF reservists, and subsidies for businesses. However, it also contains controversial cuts, including NIS 3 billion ($814 million) that will affect public sector workers.

Opposition leaders such as Benny Gantz have labeled the budget as a display of the government's “disconnection and shamelessness.” Avigdor Liberman, leader of Yisrael Beytenu, also criticized the budget for its tax hikes, particularly the increase in VAT from 17% to 18%.

Despite some initial uncertainty surrounding the United Torah Judaism (UTJ) party’s stance on the budget, the coalition held firm. Following a historic meeting of influential rabbinical leaders, including the Gerrer Rebbe and other senior figures, it was decided that the UTJ would support the budget, ensuring its passage.