From the Liveblog of
Sunday, August 18, 2024
Netanyahu, Smotrich agree to pass 2025 state budget by end of year
Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich agree to pass the 2025 state budget by the end of the year.
“Discussions were held regarding the budget framework, with a goal of supporting the war effort on the fronts and at home in order to push the economy forward,” says a statement by Netanyahu’s office, adding that the two agreed the budget would pass by the end of 2024.
In the wake of credit rating cuts by S&P and Moody’s, Smotrich is under pressure to maintain fiscal responsibility at a time when the budget deficit has swelled due to Israel’s war against Hamas in the Gaza Strip.
Spending on the war has topped NIS 80 billion ($22 billion) and investors are watching to see if Smotrich has the political will in the coalition of right-wing and religious parties to make big fiscal adjustments.
Reuters contributed to this report.
