With budget vote looming, reports swirl over cuts and provisions

With the government slated to vote this week on the 2025 national budget, a number of reports have emerged in Hebrew media over clauses and conditions expected to be included, amid massive defense spending on the ongoing multi-front war.

The Marker reports that the Finance Ministry plans to cut NIS 400 million from the higher education budget, noting that Finance Minister Bezalel Smotrich has yet to reach deals with many ministers over cuts in their purviews.

According to Channel 12 news, the budget is slated to include the shutting of at least five government ministries considered to be superfluous, while the VAT is expected to rise from 17% to 18%.

Meanwhile, Ynet reports that the budget will include a cut in the state-mandated convalescence payments paid out to workers each summer.

The cabinet is slated to vote on the budget this Thursday, amid widespread infighting within the coalition, in particular over Haredi parties’ demands to pass a law exempting the ultra-Orthodox from military service.