Knesset Approves 2025 Budget, Averts Elections Amid Protests
Knesset Approves 2025 Budget, Averts Elections Amid Protests

Knesset Approves 2025 Budget, Averts Elections Amid Protests

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Israel's Knesset approved the contentious 2025 state budget by a vote of 66-52, a decision that averts the collapse of Prime Minister Benjamin Netanyahu's government amid ongoing protests and political tensions. The budget, totaling NIS 756 billion ($205 billion), prioritizes defense spending with a record NIS 110 billion allocated, reflecting the government's focus on military efforts against Hamas. Finance Minister Bezalel Smotrich described it as a 'war budget' aimed at ensuring national security and economic stability, while opposition leader Yair Lapid criticized it as a 'robbery' against the public. The budget's passage comes amidst public outcry, including protests from families of hostages in Gaza and accusations of neglecting the middle class. The approval also provides political stability for Netanyahu, whose government has faced significant public dissent and market turmoil in recent months. The budget includes tax hikes to manage an anticipated deficit of 4.9% of GDP, further igniting debates on fiscal responsibility.

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