Free Trial

Israeli Cabinet Passes Amended War Budget

ISRAEL

The Israeli cabinet has passed an amended state 'war' budget which includes a sharp increase in spending to finance its operations against Hamas.

  • Reuters reports that the amended budget adds NIS 55 billion for, "defence and compensation."
  • Reuters notes: "Israel last year approved a two-year budget for 2023 and 2024, but the war against Hamas in Gaza has shaken government finances, requiring budget changes and additional spending."
  • The Times of Israel reports that yesterday’s government meeting, "quickly descended into acrimony, with cabinet members trading insults and Education Minister Yoav Kisch, of the premier’s own Likud party, storming out of the room in rage."
  • Times of Israel reports that National Security Minister Itamar Ben Gvir struck a deal with Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich to approve an additional NIS 2 billion for the National Security Ministry.
  • The new war budget comes amid an increasingly strained relationship with the US and questions about the future of US aid: ~USD$10bln in US aid to Israel has been stalled in the US Congress since September amid a partisan dispute on US-Mexico border policy.
  • Axios has reports that, “President Biden and other senior U.S. officials are becoming increasingly frustrated with Israeli Prime Minister Benjamin Netanyahu,” noting that, “Biden hasn't spoken to Netanyahu in the 20 days since a tense Dec. 23 call, which a frustrated Biden ended with the words: "This conversation is over."”

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.