The government is expected to approve Finance Minister Bezalel Smotrich‘s proposal for a budget supplement of almost three billion NIS on Sunday to finance the continuation of evacuations from the North, the expansion of the military reserve program, and the implementation of aid for victims of October 7.
According to the minister’s announcement, this expenditure increase is made without increasing the deficit target. The government is expected to approve the legislation of a budget supplement worth 2.7 billion shekels to finance the continued stay of the North’s residents in hotels, self-evacuation, unemployment compensation payment, and return-to-work grants for evacuees.
The plan will regulate the financing of these issues until the end of the calendar year.
Additionally, the decision will include funding of 200 million shekels for the expansion of the finance minister’s military reserve program, in addition to the nine billion shekels already budgeted for the program.
The decision will also include the reserve of the budgetary source needed in 2024 for the government to implement conclusions from the Public Committee for Formulating a Dedicated Response to the Victims of October 7, headed by Prof. Aviad HaCohen.
According to the plan, the government will approve the decisions at its meeting the following Sunday. The decisions include grants and assistance to the citizens who have been affected by October 7 beyond what is currently provided by law. The value of implementing the committee’s decisions stands at 250 million in 2024, with an additional 750 million in 2025.
Finance Minister Bezalel Smotrich stated, “From the day the war broke out, I have led a responsible and expansive economic policy for the necessities of the war, on the frontlines and on the home front, until victory. The decision to be submitted to the government for approval is a direct continuation of this policy, which has proved itself [successful].”
“In collaboration with professionals and after formulating a systematic plan, we are bringing forward for government approval a decision that will provide the necessary funding for the evacuation plan for those who currently cannot return to their homes, for the military reserve plan for those have repeatedly run out to the battlefield to defend our home for ten months, and for the implementation of the conclusions of the committee that I established for citizens who were injured on October 7, those who have fallen between the cracks and have yet to receive sufficient assistance,” he continued.
“We are not only able to follow this policy, we are obligated to. It is the duty of a country to its citizens, and it is the economic line of defense that allows us to lean on it when necessary,” he added.
Smotrich explained further, “We are doing all this with the highest budgetary responsibility. Contrary to what the media shows, Israel’s economy is strong, and the figures indicate this. Due to an increase in revenues, the current legislation is not increasing the expected annual deficit, which still stands at 6.6%. We are acting with financial responsibility and will continue to behave this way and make sure that every Israeli citizen receives the maximum economic and security protection until the war is won.”
