In a significant move to address the humanitarian crisis stemming from the ongoing conflict, Israel’s cabinet has approved a substantial budget expansion. The allocation of 3.4 billion shekels, equivalent to $923 million, will be directed towards supporting the tens of thousands of Israelis who have been displaced due to the ongoing war with Hamas.
The funds are intended to provide essential assistance to those residing in hotels across the north of the country, many of whom have been forced to flee their homes due to daily rocket attacks by Hezbollah since the outbreak of the war on October 7th. The financial package also encompasses residents of communities bordering the Gaza Strip, designated as “conflict zones” by the Israeli government.
The Finance Ministry has highlighted that a portion of the total budget, amounting to 525 million shekels, has been reallocated from previous budget cuts. Additionally, 200 million shekels will be dedicated to supporting army reservists, who have been heavily involved in the conflict.
To expedite the implementation of these budget adjustments, the ministry is actively pursuing parliamentary approval. Finance Minister Bezalel Smotrich has assured the public that the additional funds will not lead to an increase in the budget deficit, which is expected to remain within the targeted range of 6.6% of gross domestic product for 2024.
The substantial financial commitment underscores the government’s commitment to providing crucial support to those impacted by the ongoing conflict. The allocation of resources aims to ensure the well-being of displaced Israelis and facilitate their return to normalcy as the situation evolves.
