JERUSALEM - Israeli Finance Minister Bezalel Smotrich on Sunday called for talks next week to draft the 2025 state budget which he said would be"marathon discussions" aimed at moving the economy on from a war that has strained public finances to boosting growth.
"I will ask you to prepare for two days of marathon discussions on Tuesday and Wednesday, 18 June 19," he said in the letter. Smotrich said they would examine the data to obtain a comprehensive and clear picture to respond quickly and efficiently to the challenges the country faces. The extra spending has not been offset with cutbacks in other areas or higher taxes, so that the annual budget deficit reached 7.2% of gross domestic product in May, above a 6.6% target for all of 2024 - which itself was raised from a pre-war level of 2.25%.
Smotrich last month won a battle with Defence Minister Yoav Gallant to set up a committee to examine Israel's defence budget. Central Bank Governor Yaron said at the time that the war does not necessitate a"blank check" to the military.Smotrich has said the cuts were not based on sound economic reasoning and tantamount to a pessimistic"manifesto.