Israel's Netanyahu, allies pass new budget with extensive grants for Settlements, Ultra-Orthodox

While the budget may provide Netanyahu with some respite within his coalition of ultra-Orthodox and ultranationalist parties, which constitutes Israel's most hard-line government to date, it is also expected to deepen divisions within the country

On Wednesday, Prime Minister Benjamin Netanyahu's government successfully passed a new two-year budget, a move that could bring some stability to his coalition and pave the way for the advancement of its religious and pro-settlement agenda, AP reported.

While the budget may provide Netanyahu with some respite within his coalition of ultra-Orthodox and ultranationalist parties, which constitutes Israel's most hard-line government to date, it is also expected to deepen divisions within the country.

Critics have accused Netanyahu of increasing spending on his ultra-Orthodox allies for religious programs that offer little economic or societal benefits.

The voting process continued throughout the night, with the budgets for 2023 and 2024 finally receiving parliamentary approval with a 64-56 vote after daybreak. This followed weeks of tense negotiations between Netanyahu and the parties within his coalition.

"We have received the tools, we're rolling up our sleeves and going to work," stated Finance Minister Bezalel Smotrich after the vote.

The new budget has faced criticism for allocating nearly $4 billion in discretionary funds, a significant portion of which is designated for ultra-Orthodox and pro-settler parties.

This includes increases in contentious stipends for ultra-Orthodox men to study full-time in religious seminaries instead of working or fulfilling military service, which is compulsory for most secular males.

Additionally, it provides more funding for ultra-Orthodox schools, which have been widely criticized for not equipping students with skills like math and English that are necessary for the modern workforce.

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The funds also encompass tens of millions of dollars for hard-line pro-settler parties to promote their favored projects through the ministries they oversee.

Finance Minister Bezalel Smotrich, a settler leader himself, has expressed his intention to double the population of West Bank settlers in the coming years.

The composition and agenda of the government have deeply divided the country. On Tuesday, several thousand Israelis waving flags staged a protest outside the parliament building against the budget.

This smaller demonstration against the budget followed months of sustained mass protests opposing a series of proposals by Netanyahu's government aimed at overhauling the country's judicial system while the prime minister himself is on trial for corruption.

Supporters argue that these measures are necessary to restrain an overly assertive Supreme Court, while critics claim that the plan would undermine the country's system of checks and balances and compromise Israeli democracy.

While the judicial system overhaul plan is currently on hold, the passage of the budget may reignite pressure from Netanyahu's allies to revive it.

(With inputs from AP)

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