Israel cabinet approves 2024 budget increase to fund displaced citizens

Due to a spike in military spending, the deficit hit 8.1% of GDP in July over the prior 12 months.

Israel's cabinet on Sunday approved an expansion of 3.4 billion shekels ($923 million) in the 2024 state budget to help fund evacuees until the end of the year, the Finance Ministry said.

Tens of thousands of Israelis in the north have been displaced into hotels in the wake of daily rocket attacks by Hezbollah since the outbreak of the Israel-Hamas war that began on Oct. 7. Those from Gaza border communities are also included in what the cabinet called "conflict zones".

The ministry also said that 525 million shekels of the total budget was returned to state coffers after prior spending cuts, while another 200 million shekels would finance army reservists.

The ministry said it was working to bring the budget adjustments for a vote in parliament as soon as possible.

Finance Minister Bezalel Smotrich said the additional funds would not add to the budget deficit and that the deficit would reach its 2024 target of 6.6% of gross domestic target.

Due to a spike in military spending, the deficit hit 8.1% of GDP in July over the prior 12 months.