Israel's Local Authorities to Receive Boost with Increased Balancing Grants

Israel's Ministry of the Interior is set to increase balancing grants to address disparities in local authority services. In 2024, an additional 350 million shekels will be allocated, rising to a 3.65 billion shekel budget. The increase aims to support infrastructure amid rising economic challenges.

The Israeli Ministry of the Interior has announced a significant increase in balancing grants, earmarked as a pivotal resource for bridging service disparities among local authorities. Starting in 2024, an extra 350 million shekels (USD 95.11 million) will be infused into the local economy, escalating the total balancing grant provision to 3.65 billion shekels (USD 1 billion).

From 2025, an additional 300 million shekels (USD 81.52 million) will be integrated into the annual budget, maintaining a consistent grant sum of 3.6 billion shekels (USD 1 billion). This initiative aims to address economic challenges driven by rising prices and inflation, as well as to mend budget shortfalls exacerbated by recent crises, including the Corona pandemic and the Iron Sword War.

According to the Ministry, these measures will not only bolster emergency preparedness but also refine the municipal infrastructure and services offered to residents, ensuring that local authorities remain resilient and efficient in unpredictable circumstances.

(With inputs from agencies.)