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English

Government bill · 25th Knesset · published as law 30 September 2025

חוק הפחתת הגירעון והגבלת ההוצאה התקציבית (תיקון מס' 29), התשפ"ו-2025Law on the Reduction of the Deficit and Limitation of Budget Expenditure (Amendment No. 29), 2025 · automatic translation · suggest a correction

Status: התקבלה בקריאה שלישית

Topics: State budget* · * from the Knesset's official law classification

What the sponsors propose

The Bill seeks to amend the Deficit Reduction and Budgetary Expenditure Limitation Law, so that the deficit ceiling for 2025 will be increased from 4.7% to 5.0% of GDP, and in accordance with the allocation of an additional amount could reach up to 5.2% of GDP. It is also proposed to increase the permitted growth rate in government expenditure for 2025 from 14.4% to 20.4%, of which 5.6% is for financing security needs and 0.4% for financing civilian needs arising from the military operations. According to the sponsors, this is required due to additional expenses incurred as a result of Operation Gideon's Chariots and Operation Rising Lion against Iran, reserve duty mobilization more extensive than expected, victims of hostile actions, and debt repayment, which were not reflected in the forecasts at the time the 2025 budget was approved, and therefore an additional budget law for 2025 needs to be enacted.

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Hebrew original

הצעת החוק מבקשת לתקן את חוק הפחתת הגירעון והגבלת ההוצאה התקציבית, כך שתקרת הגירעון לשנת 2025 תוגדל מ-4.7% ל-5.0% מהתוצר, ובהתאם להקצאת סכום נוסף תוכל להגיע עד 5.2% מהתוצר. כן מוצע להגדיל את שיעור הגידול המותר בהוצאה הממשלתית לשנת 2025 מ-14.4% ל-20.4%, מתוכם 5.6% למימון צרכים ביטחוניים ו-0.4% למימון צרכים אזרחיים הנובעים מהפעולות הצבאיות. לדברי המציעים, הדבר נדרש בשל הוצאות נוספות שנגרמו עקב מבצעי "מרכבות גדעון" ו"עם כלביא" מול איראן, גיוס מילואים נרחב מהצפוי, נפגעי פעולות איבה והחזר חובות, אשר לא שוקפו בתחזיות בעת אישור תקציב 2025, ולפיכך יש צורך בחקיקת חוק תקציב נוסף לשנת 2025.

An automatic summary of the explanatory notes written by the bill's sponsors. These are their arguments, not an official Knesset summary. · The bill on the Knesset website · write to the author

Readings

What was said in the plenum

The bill seeks to increase the budget expenditure limit for 2025 by approximately 30.8 billion shekels and raise the deficit ceiling from 4.9% to 5.2% of GDP, in order to fund security and civilian expenses arising from Operation Gideon's Chariots and Operation Rising Lion, which were not anticipated when the original 2025 budget was approved. The debate focused on whether this is a necessary and unavoidable expansion of the defense budget during wartime, alongside broad support for the defense budget, versus harsh claims about mismanagement of the budget and the war, improper priorities, coalition funds, and the claim that the increased deficit does not reflect the full costs of the war.

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Hebrew original

הצעת החוק מבקשת להגדיל את מגבלת ההוצאה התקציבית לשנת 2025 בכ-30.8 מיליארד שקל ולהעלות את תקרת הגירעון מ-4.9% ל-5.2% מהתמ״ג, כדי לממן הוצאות ביטחוניות ואזרחיות שנבעו ממבצע מרכבות גדעון ומבצע עם כלביא שלא נצפו בעת אישור תקציב 2025 המקורי. הדיון התמקד בשאלה אם מדובר בהרחבה נחוצה ובלתי נמנעת של תקציב הביטחון בעת מלחמה, לצד תמיכה רוחבית בתקציב הביטחוני, לעומת טענות קשות על ניהול כושל של התקציב והמלחמה, על סדרי עדיפויות פסולים, על כספים קואליציוניים ועל כך שהגדלת הגירעון אינה משקפת את מלוא עלויות המלחמה.

Arguments for

  • The budget is needed to fund security and civilian expenses that could not have been foreseen with the outbreak of Operation Gideon's Chariots and Operation Rising Lion, and to provide certainty to government bodies and markets.
    Haim Katz, Hanoch Dov Milwidsky (Likud), Bezalel Smotrich
  • The defense budget in wartime should be above political disputes, and therefore it should be approved rather than voted against, since it enables the military to purchase weapons and pay salaries and grants to reserve soldiers.
    Bezalel Smotrich
  • Israel's economic situation is stronger than presented, as evidenced by the strengthening shekel, record stock market highs and macroeconomic data, and victory in the war will bring security and, from it, economic growth.
    Bezalel Smotrich
  • The revenue forecast was revised upward by about 20 billion shekels compared to the original forecast, so that raising the deficit ceiling reflects only the remaining increase needed in expenditures.
    Haim Katz

Arguments against

  • This is the eighth budget in less than three years and the fifth breach of the budget framework, evidence of failed, amateurish economic management by the government and the finance minister that is disconnected from reality.
    Vladimir Beliak (Yesh Atid), Orit Farkash Hacohen (Blue and White), Moshe Solomon (Religious Zionism)
  • The budget does not reflect the costs of continuing the war in Gaza (Operation Gideon's Chariots B, military government, Gaza rehabilitation), so that within a short time another breach of the budget and a further increase in the deficit will be required.
    Vladimir Beliak (Yesh Atid), Orit Farkash Hacohen (Blue and White)
  • Alongside the increased deficit and expected cuts to welfare, health and education services, the government continues to transfer large coalition funds to affiliated political sectors, unnecessary ministries and religious councils.
    Vladimir Beliak (Yesh Atid), Naor Shiri (Yesh Atid), Orit Farkash Hacohen (Blue and White), Yorai Lahav Hertzanu (Yesh Atid)
  • The budget does not provide an adequate response for combat-shocked soldiers, IDF disabled veterans, or the rehabilitation of damaged hospitals and infrastructure, and does not reflect equality in the burden while parts of society evade military service.
    Vladimir Beliak (Yesh Atid), Orit Farkash Hacohen (Blue and White), Tatiana Mazarsky (Yesh Atid), Yorai Lahav Hertzanu (Yesh Atid), Ram Ben Barak (Yesh Atid), Yaron Levi (Yesh Atid), Hamad Amar (Yisrael Beytenu)
  • The growing deficit and the management of the prolonged war, without a political plan for the day after and amid worsening international isolation, harm the economy, exports, and Israel's credit rating, and deepen the cost of living at the public's expense.
    Vladimir Beliak (Yesh Atid), Orit Farkash Hacohen (Blue and White), Mickey Levy (Yesh Atid), Michal Shir Segman (Yesh Atid), Yaron Levi (Yesh Atid), Karine Elharrar (Yesh Atid), Matti Sarfatti Harcavi (Yesh Atid)
Who spoke (60)
MemberFactionReadingsSpeechesIn the final vote
Haim Katz—First reading1no record
Vladimir BeliakYesh Atid oppositionFirst reading, Third reading3against
Naor ShiriYesh Atid oppositionFirst reading, Third reading3against
Yoav SegalovitzYesh Atid oppositionFirst reading1no record
Meirav CohenYesh Atid oppositionFirst reading, Third reading2against
Tally GotlivLikud coalitionFirst reading1for
Adi EzuzYesh Atid oppositionFirst reading, Third reading2against
Orit Farkash HacohenBlue and White oppositionFirst reading, Third reading2against
Sharon NirYisrael Beytenu oppositionFirst reading, Third reading2against
Tatiana MazarskyYesh Atid oppositionFirst reading, Third reading2against
Yorai Lahav HertzanuYesh Atid oppositionFirst reading1no record
Samir Bin SaidHadash–Ta'al oppositionFirst reading, Third reading2against
Simon DavidsonYesh Atid oppositionFirst reading, Third reading2against
Gilad KarivLabor oppositionFirst reading, Third reading5against
Debbie BitonYesh Atid oppositionFirst reading, Third reading2against
Mickey LevyYesh Atid oppositionFirst reading, Third reading2against
Shelly Tal MeronYesh Atid oppositionFirst reading, Third reading2against
Yasmin FridmanYesh Atid oppositionFirst reading, Third reading2against
Yitshak GoldknopUnited Torah Judaism oppositionFirst reading1against
Merav Ben AriYesh Atid oppositionFirst reading1no record
Elazar SternYesh Atid oppositionFirst reading, Third reading2against
Tsega MelakuLikud coalitionFirst reading1for
Oded ForerYisrael Beytenu oppositionFirst reading, Third reading2against
Ron KatzYesh Atid oppositionFirst reading, Third reading2against
Avi MaozNoam oppositionFirst reading, Third reading2against
Efrat Rayten MaromLabor oppositionFirst reading, Third reading2against
Mansour AbbasRa'am oppositionFirst reading, Third reading2against
Waleed AlhwashlaRa'am oppositionFirst reading, Third reading2against
Kathrin ShitritLikud coalitionFirst reading1for
Michal Miriam WoldigerReligious Zionism coalitionFirst reading1for
Ariel KallnerLikud coalitionFirst reading1for
Yasir HujeiratRa'am oppositionFirst reading, Third reading2against
Pnina TamenoBlue and White oppositionFirst reading, Third reading2against
Michal Shir SegmanYesh Atid oppositionFirst reading, Third reading2against
Meir CohenYesh Atid oppositionFirst reading, Third reading2against
Moshe TurpazYesh Atid oppositionFirst reading, Third reading2against
Boaz ToporovskyYesh Atid oppositionFirst reading1against
Evgeny SovaYisrael Beytenu oppositionFirst reading, Third reading2against
Alon SchusterBlue and White oppositionFirst reading, Third reading2against
Tzvi Yedidia SukkotReligious Zionism coalitionFirst reading1for
Osher ShkalimLikud coalitionFirst reading1for
Amit HaleviLikud coalitionFirst reading1no record
Avichay Avraham BuaronLikud coalitionFirst reading1for
Merav MichaeliLabor oppositionFirst reading, Third reading2against
Ram Ben BarakYesh Atid oppositionFirst reading, Third reading2against
Shlomo KarhiLikud coalitionFirst reading1for
Ofir KatzLikud coalitionFirst reading, Third reading3for
Hanoch Dov MilwidskyLikud coalitionThird reading2for
Naama LazimiLabor oppositionThird reading1against
Eitan GinzburgBlue and White oppositionThird reading1against
Moshe SolomonReligious Zionism coalitionThird reading1for
Yaron LeviYesh Atid oppositionThird reading1against
Karine ElharrarYesh Atid oppositionThird reading1against
Hamad AmarYisrael Beytenu oppositionThird reading1against
Aida Touma SlimanHadash–Ta'al oppositionThird reading1against
Matti Sarfatti HarcaviYesh Atid oppositionThird reading1against
Ahmad TibiHadash–Ta'al oppositionThird reading2against
Waleed TahaRa'am oppositionThird reading1against
Ayman OdehHadash–Ta'al oppositionThird reading1against
Bezalel Smotrich—Third reading1no record

An automatic summary of the plenum transcripts: the debate on the bill at every reading it was voted on. Arguments are given as the speakers made them; this is not an assessment. The list of speakers comes from the transcript, without a model. Transcripts of the sittings: 1, 2 · write to the author

Reservations, sections and other votes (26)

In order. Votes on reservations and individual sections are shown separately from the vote on the bill as a whole.

Source: bill page in the Knesset legislation database ↗

Law on the Reduction of the Deficit and Limitation of Budget Expenditure (Amendment No. 29), 2025 · How the Knesset Votes