Smotrich proposes budget cuts, salary freezes to fund genocide
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Smotrich has reiterated the government's goal of reducing the overall deficit to 6.6% by 2024, although this would still be one of "Israel's" worst deficits this century.
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Finance Minister Bezalel Smotrich speaks at the Israeli parliament in occupied al-Quds, on July 10, 2023. (AP)
Bezalel Smotrich, the Israeli finance minister, has disclosed that additional military expenses will be funded by budget cutbacks, salary freezes, and increased revenues instead of a wider deficit, as he unveiled a long-awaited budgetary plan for next year.
Smotrich stated that the planned fiscal gap for 2025 will be lowered to 4% of GDP, necessitating budgetary modifications of at least 35 billion shekels ($9.5 billion).
Speaking to the media in occupied al-Quds on Tuesday, he refrained from providing any details, citing the need to present his proposals to Prime Minister Benjamin Netanyahu and other ministers. Nonetheless, he emphasized the necessity for significant public sector cuts and salary freezes for ministers, legislators, and civil servants.
The war on Gaza and "Israel's" aggression on Lebanon have increased the occupation's expenditures and significantly deteriorated its economy.
"Israel's" 12-month trailing deficit increased to 8.1% of GDP in July, and the entity received its first-ever rating downgrades.
Smotrich repeated the government's goal of reducing the overall deficit to 6.6% by 2024, although this would still be one of "Israel's" worst deficits this century.
While Smotrich claimed that the 2025 budget will be approved in the Israeli parliament by the end of the year, technocrats consider this unachievable with the pending structural work and lengthy legislative procedure.
Delays have alarmed investors and business leaders, who have warned that a pause will cloud "Israel's" economic prospects and increase the already high-risk premium on its assets.
Smotrich stated that "Israel" may meet its budget targets for this year unless unanticipated expenditures from the aggression on Gaza or confrontations with Hezbollah escalated.
Tel Aviv's major market index fell further down to 1.5% as of 5:30 pm local time after Smotrich spoke.
According to Smotrich, the Finance Ministry's 1.9% growth forecast for 2024 "will likely be lowered soon." Citigroup Inc. analysts put the figure in question at 1.4%.
When asked if the administration will continue to provide contentious political expenditures to be spent at the discretion of coalition party leaders, Smotrich replied they should be kept to a minimum. These subsidies, which totaled almost six billion shekels this year, have sparked popular outrage since a major share is spent on religious schools and settlements in the occupied West Bank.
For months, central bank officials have urged the Finance Ministry to propose fiscal changes to deal with increased military spending.
Israeli economy 'is a sinking ship': Israeli media
Israeli Finance Minister Bezalel Smotrich does not have a clue about the economy amid his nonchalance toward the worsening economic situation in "Israel" in light of the 11-month multi-front war, Israeli Maariv journalist Natan Zahavi said on Saturday, citing experts.
According to Zahavi, Smotrich, who has a controversial past, is color-blind and does not see the flashing red lights warning that the ship is on the verge of crashing and sinking. He also "neglects the investors that are abandoning the sinking ship, and he does not listen to the directors of credit rating companies who downgrade Israel's rating and warn of the seriousness of the situation and downgrade the rating again."
Smotrich also does not realize that tourists are no longer visiting "Israel" and that hotels and tourism companies lack revenue while the minister ignores their cries for help.
"The arrogant, over-confident Smotrich is using public funds as if they were his own, distributing interest and grants to sheep from his pastures and turning a blind eye to the farmers whose fields were burned by the fires of Gaza and Hezbollah," Zahavi added.
He also addressed the worsening state of the healthcare system, exposing the sharp decline in the number of doctors and psychologists available and the cuts in budgets for the rehabilitation of those impacted by the war, in addition to the immigration of doctors to work abroad and not return.
Moreover, the cost of living and airfare prices in "Israel" are skyrocketing, with the latter being the highest in the world, in addition to "increasing reports from economics departments about high-tech technicians leaving abroad."
