Israel's 2025 Budget Faces Final Lawmakers' Vote Amid Transparency Concerns

Israel's parliament committee approved the 2025 state budget after a lengthy debate, setting up a crucial vote before a March 31 deadline to avoid government collapse. The budget totals $203.5 billion, with record defense spending, amidst transparency concerns and potential impact on credit ratings.

In a pivotal move, Israel's parliamentary finance committee sanctioned the proposed 2025 state budget on Sunday, following extensive discussions lasting 13 hours. This approval stage precedes a vital parliamentary vote needed before March 31 to avert a governmental crisis.

The allocated budget, amounting to 756 billion shekels (approximately $203.5 billion), earmarks an unprecedented 110 billion shekels for defense. This marks a significant 21% uptick in expenditure compared to 2024. However, transparency issues arose during the debate, with opposition accusing government secrecy over unspecified spending areas.

Finance Minister Bezalel Smotrich's efforts faced delays due to political disputes within the coalition. The budget aims to balance tax hikes countering a past 6.8% deficit that risked unsustainable economic paths. The looming full parliament vote remains uncertain, amid concerns of further tax burdens and credit rating downgrades.

(With inputs from agencies.)