Mon Sep 16 15:14:59 UTC 2024: ## Smotrich’s War Spending Bill Faces Opposition Criticism
The Knesset Finance Committee began reviewing a bill proposed by Finance Minister Bezalel Smotrich on Monday, aiming to expand government spending by NIS 3.4 billion. The bill focuses on war-related expenditures, including funding for evacuees, released hostages, and their families, aid for businesses impacted by the conflict, and increased financial support for combat reservists and their families.
Smotrich argued that the spending increase will not affect the state’s budget deficit due to higher-than-expected tax revenue. However, opposition members harshly criticized the bill and the government’s overall economic performance.
Yesh Atid MK Vladimir Beliak, the opposition coordinator in the committee, argued that the spending increase was unnecessary and could be avoided by closing government ministries and cutting coalition funding. He also pointed to Israel’s rising inflation rate, exceeding the Bank of Israel’s target range, and the recent credit rating downgrades from major rating companies.
Beliak stated that these downgrades will cost the state over NIS 30 billion in 2025 due to increased interest rates on state borrowing. He further highlighted the decline in Israel’s growth projection and the substantial rise in prices for essential goods like fruits and vegetables.
Beliak concluded that the bill was inefficient and insufficient to address the current economic situation, calling for Smotrich’s resignation.
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