January 1, 2025 — In a rare and contentious late-night session, the Knesset Finance Committee approved several significant budget transfers on the eve of the close of the 2024 fiscal year. Despite ongoing legal challenges and sharp opposition criticism, the committee ratified the transfers that will allocate billions of shekels to key government sectors.
Among the major allocations, the committee approved NIS 3.63 billion for the National Insurance Institute (NII) to support various social benefits, and NIS 2.36 billion for the Ministry of Health, ensuring continued funding for health services. Local authorities were also granted NIS 161 million to bolster their operations and services.
Other notable transfers included NIS 211 million for the Ministry of the Interior, largely earmarked for Shas chairman Aryeh Deri’s food stamp program, which is part of the coalition’s agreements. The Prime Minister’s Office received a NIS 126 million allocation, which will fund both local authority grants and coalition-related initiatives.
Controversial Ministry of Education Transfer
One of the most contentious discussions revolved around a NIS 4.5 billion budget transfer to the Ministry of Education. This allocation was re-evaluated after the Knesset’s legal bureau raised questions that remained unanswered. Opposition members accused the committee of improper approval procedures, particularly in light of coalition-related budget allocations. The legal concerns led to a delay in the approval process, with the committee convening late into the night to resolve the matter.
Legal Concerns and Opposition Criticism
Knesset legal advisor Sagit Afek expressed strong objections to the late-night debate. She criticized the committee for setting a troubling precedent by continuing deliberations at such a late hour. Afek noted that the Ministry of Finance had consistently pushed for budget deadlines to be respected, stressing that late budget requests are typically not actionable in the subsequent year.
Ministry of Finance representatives responded by acknowledging the irregular timing, explaining that while the budget technically closed at noon, efforts were made to extend the deadline into the evening to facilitate the approval of these crucial budgetary changes.
Implications of the Transfers
The last-minute approvals highlight the urgency of securing necessary funding for essential public services as the fiscal year draws to a close. The budget transfers will likely have significant impacts on social welfare programs, health services, education, and local governance in the coming year. However, the process has raised concerns about transparency and the influence of political agendas in shaping budget decisions.
With the year-end budget debate concluded, attention will now turn to how these transfers will be implemented and whether the legal challenges raised during the session will lead to further scrutiny in the future.
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