Budget deficit and war: Israel on the brink of economic crisis?
Eviralnews,, citing Rashatoudi, while the war in Gaza continues and the tensions between the Israeli regime and Lebanon's Hezbollah are increasing, the government of Benjamin Netanyahu, the Prime Minister of Israel, refuses to hold sensitive negotiations about the 2025 budget.
Bloomberg quoted Israeli finance ministry officials as saying on Monday that talks on Israel's budget are usually done by this time of the year, but so far there has been almost no serious discussion.
According to the report, budget proposals are usually prepared in early summer, presented to the cabinet by August and approved by parliament by the end of the year. Failure to approve the budget by March 31, 2025 will lead to the dissolution of the government and the holding of early elections.
Netanyahu and Israel's Finance Minister Bezalel Smotrich have yet to provide an explanation for the delays.
An official in Netanyahu's office, who spoke on condition of anonymity, told Bloomberg that the budget and financing plans would be easily approved even if submitted to the cabinet by October.
Meanwhile, Bank of Israel Governor Amir Yaron has urged Netanyahu to speed up the budget approval process, claiming that financial markets are seeking responsible fiscal policy even in times of war.
Yaron has argued that permanent budget reforms of around 30 billion shekels ($8.1 billion) are needed next year to cover defense and other war-related expenses.
He has also emphasized the need to stabilize Israel's debt-to-GDP ratio.
Due to the decrease in Israel's credit rating due to the increase in the budget deficit caused by the increase in military and civilian expenses, Netanyahu's government has been under increasing pressure.
end of message/
