Israel's Cabinet Approves Controversial 2024 Budget Amid Ongoing Conflict

The revised budget, which includes increased defense spending and compensation for conflict-affected communities, faces criticism for its potential impact on the deficit.

• Israel's cabinet has approved a disputed 2024 state budget, adding 55 billion shekels ($15 billion) of spending after over three months of war with Hamas.
• The revised budget includes increased funding for defense and compensation for those affected by the conflict, as well as higher allocations for healthcare, police, welfare, and education.
• The revised budget amounts to approximately 582 billion shekels, representing a growth of around 70 billion shekels in expenditures, with a planned deficit of about 6.6% of the GDP.
• The budget approval came after more than 24 hours of debate, with some ministers unhappy about budget cuts to some ministries meant to offset extra war spending.
• The budget approval is likely to upset the Bank of Israel, which has been urging the government to cut more spending and raise taxes to prevent the deficit from swelling.

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