Smotrich reportedly holding up funds for Arab towns despite interior minister’s objections

Finance Minister Bezalel Smotrich attends a discussion about the state budget, during a Finance Committee meeting at the Knesset, July 3, 2023. (Yonatan Sindel/Flash90)
Finance Minister Bezalel Smotrich attends a discussion about the state budget, during a Finance Committee meeting at the Knesset, July 3, 2023. (Yonatan Sindel/Flash90)

Finance Minister Bezalel Smotrich has reportedly frozen grants earmarked for Arab municipalities so he can “reconsider” what to do with the money.

According to the Kan public broadcaster, NIS 200 million that was earmarked for economic development has yet to be transfered to Arab local authorities despite a warning from Shas Interior Minister Moshe Arbel.

Smotrich tells Kan that he is “reconsidering” the transfer of funds as he weighs his “priorities” for the funding.

Kan today publishes a letter sent to Smotrich last month from Arbel calling on the finance minister “to release” hundreds of millions of shekels to Arab municipalities. Failure to do so, Arbel warned, “may lead to significant damage to the local authorities’ budgetary balance.”

Though the letter is dated July 26, the report says Smotrich has yet to free up the funds in any manner and they remain with the Treasury.

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