Knesset Passes 2025 Budget, Praised by Smotrich, Condemned by Opposition

The Knesset passed the 2025 budget Tuesday, securing Prime Minister Binyamin Netanyahu’s government and avoiding new elections.

The NIS 755 billion ($205 billion) budget was approved by a vote of 66-52.
Netanyahu made the announcement on social media: “We passed the budget. We’re moving forward,” he wrote.

Finance Minister Bezalel Smotrich calling it a “victory budget” for Israel’s economy and defense.

“This is a war budget, and, G-d willing, it will also be the victory budget,” Smotrich said.

Opposition leader Yair Lapid, however, condemned it as “the greatest robbery in the history of the country,” criticizing cuts to public services while maintaining funding for Charedi institutions.

The budget includes record defense spending of NIS 110 billion ($29 billion), additional funds for IDF reservists, and business subsidies. Meanwhile, opposition lawmakers protested cuts of NIS 3 billion ($814 million) affecting public sector workers.

Other opposition leaders, including Benny Gantz, slammed the budget as proof of the government’s “disconnection and shamelessness.” Yisrael Beytenu’s Avigdor Liberman criticized tax hikes, including a VAT increase from 17% to 18%.

After uncertainty earlier this week as to whether UTJ would uphold the budget or even leave the coalition, the decision was made by Gedolei Yisroel to move forward with the budget, after a historic meeting between the Gerrer Rebbe shlita, Hagaon Harav Moshe Hillel Hirsch shlita and Hagaon Harav Dov Lando shlita.