The Israeli newspaper Jerusalem Post said that the Finance Ministry’s meeting regarding the 2025 budget revealed a series of harsh budget cuts, including a significant 5% reduction in all areas for government ministries.
These measures, which were described as necessary for economic recovery in Israel and reducing the country’s deficit, sparked great controversy according to the newspaper, as they include:
- Salary cuts for senior public sector managers.
- Postponing increases in the civil service.
- Abolition of unnecessary ministries.
- Reducing between 2 and 4 billion shekels in funds allocated to coalition parties, for a total of 3.5 billion shekels.
Unequal treatment
The proposed fixed budget cuts are expected to have dire effects on Israeli society, potentially causing widespread frustration and anger, according to the newspaper.
The newspaper states that public sentiment is particularly sensitive to prioritizing coalition funds and retaining non-essential ministries rather than cuts that would affect the entire population.
Recent controversies, such as the Rabbinic Bill and the Haredi Bill, have reinforced the pessimistic view of gross inequality of treatment between different sectors of society.
The newspaper explains that the draft “Rabbis Law” aims to transfer control over the appointment of municipal and neighborhood rabbis from cities to the government, a move seen as a “blatant” attempt by the Haredi parties in the coalition to increase their influence.
Knesset member Yaron Levy from the Yesh Atid party strongly criticized this bill, highlighting the inequality it reinforces.
Speaking to the Jerusalem Post, he said, “If the prime minister were able to appoint a thousand new rabbis, instead of a thousand psychiatrists, this place would be a piece of garbage.”
Public protest
The Haredi bill has also been a major flashpoint in Israeli society, with the IDF citing a dire need for more soldiers in the army while the Israeli far right resists concessions with great stubbornness.
Public anger over this issue has been exacerbated by the ongoing Israeli war on the Gaza Strip and escalating tensions with Hezbollah, as more Israeli occupation army soldiers are being killed without a fair bill being put in place, according to a source who spoke to The Jerusalem Post.
Sectoral allocation of funds
According to the newspaper, the method followed by the current government in allocating funds has been a major source of criticism, especially after it declared war.
This approach, known as sectoral allocation, refers to the distribution of resources disproportionately favoring certain sectors or groups, often due to political considerations rather than objective needs or professional assessments.
Former Bank of Israel Governor Karnit Flug highlighted this issue – in an interview with the newspaper – as he pointed out that coalition agreements significantly affected the allocation of resources, leading to an unfair distribution that benefited certain groups within the coalition.
This sectoral allocation is problematic because it does not address the broader needs of the population, and fails to adhere to professional recommendations for resource distribution, according to Flug, who emphasized that this performance undermines public confidence in government.
Public confidence in the government has been severely, and perhaps irreparably, challenged since the start of the war and during last year’s controversial judicial reform.
The newspaper concludes, “The 2025 budget is another opportunity for the government to demonstrate its commitment to the broader needs of Israelis or risk further public discontent and unrest.”
