Israeli war budget falls $20bn short, spurs closure of 10 ministries

By Al Mayadeen English
Source: Israeli media
25 Dec 2023 14:39
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Israeli media suggest that the Finance Ministry looks to close off several ministries and hike taxes, among other methods, to keep its budget afloat.

Israeli Finance Minister Bezalel Smotrich speaks at the Knesset, in occupied al-Quds, occupied Palestine, July 10, 2023. (AP)

The Israeli Finance Ministry has recommended the closing of 10 government ministries to cover the huge bill it has incurred, as a result of its brutal aggression on the Gaza Strip.

The list includes the "Heritage" Ministry headed by extremist Amihai Eliyahu who had previously advocated for nuclear attacks on the Gaza Strip and later called for its reoccupation.

A report by Israeli Channel 12 said the following ministries have been suggested for closure: "The Heritage Ministry, the Settlements and National Missions Ministry, the Jerusalem and Jewish Tradition Ministry, the Intelligence Ministry, the Ministry for the Development of the Negev and the Galilee, the Regional Cooperation Ministry, the Diaspora Affairs and Social Equality Ministry, the Strategic Affairs Ministry, and the Advancement of the Status of Women Ministry."

Interestingly, the Finance Ministry, headed by Bezalel Smotrich, has also recommended austerity measures, including the cutting of 5 billion shekel, or around $1.4 billion, in funds allocated for Israeli political parties' demands.

The Ministry suggested canceling subsidies on gasoline, increasing taxes on cigarettes, and reducing benefits in advanced study scholarships.

Among the strategies recommended by the Ministry, to make up for a 70 billion Shekel deficit (around $20 billion), is an increased VAT tax attached to almost all consumer goods, which currently stands at 17%, according to The Times of Israel.

War on Gaza spurs Israeli crises

The Israeli war on the Gaza Strip has muddied the occupation's economy and society with mounting crises, including mass displacement, a reduced workforce, and exponentially increasing expenditure on its military and security needs. Concurrently, decisions taken by the Israeli war cabinet have gradually transformed the Israeli economy into a full-fledged war economy. This includes calling up around 350,000 reservists for service, which has had lasting effects on the occupation's productive and service sectors.

Among the 28.9 billion Shekel, in a recently approved budget by the Israeli Knesset, 17 billion have gone toward arms procurements and payments to the occupation's reservists.

Another 6.1 billion Shekel have been allocated to cover homefront costs resulting from the Israeli aggression on the Gaza Strip, such as housing evacuated Israeli settlers, who have filled up hotel rooms in central occupied Palestine and "Eilat" in the south. The funds are meant to cover financial assistance to thousands of wounded Israeli soldiers. The budget is also meant to cover costs incurred by Israeli shipping and aviation companies.

Israeli lawmakers did not forget about their entity's expansionist character, as they allocated over 300 million Shekel for the "Settlements and National Projects Ministry," which includes funds to aid illegal colonial outposts in the occupied West Bank.