Israeli Government Budget

Finance Ministry austerity plan revealed: Rent tax and tax credits for parents

Despite the lack of a government, senior Finance Ministry officials are already preparing the 2027-2028 budget, seeking austerity measures to cover massive defense spending.

Money bills.
Finance Minister Bezalel Smotrich attends a press conference at the Finance Ministry in Jerusalem, July 1, 2026.

Israeli gov't approves NIS 2.5 billion for defense, slashing ministry budgets ahead of elections

High Court Justice; illustrative.

High Court lifts freeze on NIS 78m. Religious Services funding, keeps broader freeze in place

Defense Minister Israel Katz in a meeting with high-ranking IDF officials.

Israel set to transfer one billion shekels to Defense Ministry for 'urgent, classified procurement'


How does Israel's new gov't budget impact your taxes?

Below is a review of some income tax and VAT measures thanks to the new Israeli government budget.

 PRIME MINISTER Benjamin Netanyahu, cabinet ministers and coalitin MKs celebrate the passage of the state budget in the Knesset plenum, last month.

A problematic gov't legislation comes a flood of bills by coalition MKs - opinion

It might well be that five months is too short a period to determine whether the threat to democracy will be realized.

PRIME MINISTER Benjamin Netanyahu and Justice Minister Yariv Levin enjoy a light moment in the Knesset plenum

An economy lacking bread will also have no Torah - opinion

The less economic ability Israel’s citizens have, the greater the harm to the State of Israel – and that is without even addressing the issue of risk-averse investors.

 FINANCE MINISTER Bezalel Smotrich addresses the plenum during the state budget debate in the Knesset, last week.

After passing the budget, ensuing stability will pay off - opinion

With a two-year budget in place, the government can now focus on its main goals: Preventing a nuclear Iran, expanding peace in the Middle East and driving economic growth.

 WOMEN’S ADVANCEMENT Minister May Golan takes a selfie with Prime Minister Benjamin Netanyahu and Justice Minister Yariv Levin in the Knesset, last week. Elections are not likely anytime soon, says the writer.

The dysfunctional government could stumble along until 2024 - opinion

The moment the dye was cast and the 2023-2024 budget turned into law, it became clear that our largely dysfunctional government could continue to stumble on.

 FINANCE COMMITTEE Chairman Moshe Gafni addresses the Knesset plenum. Gafni is certainly aware that Noa Kirel is not part of the curriculum of any sort of non-haredi school, nor the cause of haredi poverty.

Has Israel's business sector stopped growing?

The Melnick State Index reveals stagnation in Israeli business sector growth and signals economic concerns for the future.

 WORKERS FROM the hi-tech sector protest against the proposed changes to the legal system, in Tel Aviv, on Tuesday.

Israel's new budget is illegitimate, undemocratic, NGO petitions to High Court

The budget’s passage is seen as a triumph for PM Benjamin Netanyahu, who managed to overcome various coalition members’ budgetary demands and ultimatums.

 Israeli Prime Minister Benjamin Netanyahu leads a cabinet meeting on the state budget, at the Prime Minister's Office in Jerusalem on February 23, 2023.

After the budget hurdle, is it smooth sailing for the government? - analysis

While the budget's economic implications will play out in the future, what is clear is that Netanyahu has succeeded in righting the ship that is his coalition.

 Prime Minister Benjamin Netanyahu and National Security Minister Itamar Ben-Gvir greet eachother before Netanyahu's budget speech on May 23, 2023.

Israel's budget under threat as Likud dispute with haredi faction unresolved

Housing and Construction Minister Yitzhak Goldknopf may resign on Sunday in order to return to the Knesset and threaten the budget's passage.

 Prime Minister Benjamin Netanyahu leads the weekly government conference, held at the Western Wall tunnels in Jerusalem's Old City on May 21, 2023

The good, the bad and the ugly of Israel’s 2023-2024 budget

POLITICAL AFFAIRS: The government can’t help itself, and is feeding the flames by sparking crisis after crisis, controversy after controversy.

  MK YINON AZOULAY and colleagues vote during a Finance Committee meeting at the Knesset on Tuesday.