Israel Passes National Budget, But Where's the Money Headed?
06:05 GMT 05.11.2021 (Updated: 19:46 GMT 17.10.2022)
© AFP 2023 / Menahem Kahana
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The official deadline for passing the legislation was 14 November and a failure to do so would have triggered snap elections. Now that funding has been secured, the future of Israel and that of its current coalition governments appears stable.
After three and a half years of financial and political uncertainty, Israel finally has a national budget for 2021-2022.
The nation's coalition government, led by Prime Minister Naftali Bennett, managed to pass all the hundreds of clauses in the budget that currently stands at $136 and $142 billion for 2021 and 2022 respectively.
So where will this money go? Sputnik breaks it down.
Just as in previous years, the nation's budget is split between all Israeli ministries, with each of them setting up their own list of priorities and deciding where to channel the funds.
Ministry of Defence: Security Concerns
The Ministry of Defence is set to swallow a big chunk of the funds. In 2021, its budget stood at slightly more than $18 billion, whereas next year it will enjoy yet another injection, reaching nearly $18.5 billion.
Israeli Prime Minister Naftali Bennett and some of his government attend its first cabinet meeting in the Knesset, Israel's parliament, in Jerusalem June 13, 2021.
© REUTERS / Ronen Zvulun
This sum excludes funds allocated to the country's security agencies. It also does not include annual US assistance, which is expected to reach $4.7 billion.
Israel's military apparatus has long stressed the importance of allocating huge amounts of money for its needs. In the south, the country is still facing the threat of Hamas, a militant organisation that controls the Gaza Strip. In the north, it is confronting Lebanon's Hezbollah, known for its high-level military capabilities.
Ministry of Health: COVID-19 Tops the Agenda
Over the past two years, this government body has been at the forefront of the coronavirus pandemic. And this was why the head of the ministry, Nitzan Horowitz, rejected an initial proposal that gave his office slightly more than $17 billion. After months of fighting, his request has been granted, with the current budget for the health establishment now at $18.6 billion.
A medical worker prepares to administer a vaccination against the coronavirus disease (COVID-19) at a temporary Clalit Healthcare Maintenance Organization (HMO) centre, at a sports hall in Netivot, Israel February 4, 2021
© REUTERS / AMIR COHEN
The pandemic response remains a top spending priority: Israel will create more medicine-related jobs, invest money in the development of medications that fight the virus, and will increase student quotas at universities.
Other areas will also be tackled. Israel will have special funds allocated for the construction of new psychiatric institutions. Generous boosts will be given to public hospitals. More equipment will be created and purchased (including for the periphery) and Israelis will enjoy a wider range of medicines sponsored by the state.
Ministry of Transportation: Tackling Pressing Needs
In 2021, this ministry's budget stood at $11 billion. Next year, it will add slightly more than $1 billion to its coffers, and the idea is that this sum will help the country tackle the multiple infrastructure problems currently facing the nation, including traffic jams and insufficient public transportation system.
According to projections, millions will be invested in boosting the number of buses, the expansion of roads, and the establishment of connectivity between the centre and the periphery.
Many funds will also be allocated for the construction of a subway system in the centre of the country, where serious traffic jams and pollution plague the area.
Other Needs:
Nearly $9.5 billion will be allocated for the Arab community, who is currently witnessing high rates of unemployment, crime, and underdeveloped infrastructure.
Palestinian demonstrators gather at the Israel-Gaza border fence during a protest in the southern Gaza Strip August 25, 2021
© REUTERS / MOHAMMED SALEM
The official deadline to pass the budget was 14 November and the failure to do so would have triggered snap elections. Now that the funds have been secured and locked in, Israel's future seems to be stable, and so does the future of its current coalition government.
