Israel's Budget 2025: Deficit Challenges and Political Maneuvering

Israel's parliament approved the framework for the 2025 state budget, aiming for final approval soon. The budget outlines a deficit target of 4.9% of GDP and allocates significant resources towards military and economic growth amidst ongoing political challenges and demands from coalition partners.

In a crucial development, Israel's parliament has given its nod to the 2025 budget framework, setting the stage for its final approval by month's end. This strategic move seeks to avert a governmental collapse amid Israel's delicate political landscape.

The forthcoming budget sets a 4.9% GDP deficit target, marking an increase from the previously projected 4.4%. Notably, the total expenditure amounts to 619 billion shekels, representing a 13.6% rise compared to last year. This budget addresses military needs while providing economic growth opportunities.

Political tensions simmered as coalition partners delayed progress, with disputes centering on military exemptions for religious students and increased funding for seminaries. The eventual approval journey continues as debates ensue in the parliamentary finance committee before heading for the final vote.

(With inputs from agencies.)