Northern Israel mayors outraged by massive government budget cuts to their communities

The government approves 500 million shekel cut, mainly affecting displaced northern residents; Finance Ministry promises money will return but the north is doubtful: 'They are laundering funds that have not yet been given to us'

Following the IDF's preemptive strike against Hezbollah on Sunday, Israel's northern residents were astonished to discover the government was allocating about 200 million shekels from their budget to fund the displaced southern residents.
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פגיעה בבניין בעכו
פגיעה בבניין בעכו
Hezbollah hit a house in Acre
(Photo: Gil Nechushtan)
The government cut approximately 496 million shekels on Sunday to allow the continued allocation of funds for the displaced southern residents, which expires at the end of the month. The government approved Finance Minister Bezalel Smotrich's proposal to expand the budget with 3.4 billion shekels until the end of 2024. However, that requires a significant budgetary shift, an idea opposed by Finance Ministry officials. Also, it requires legislation which is impossible to pass in five days.
Therefore, the Finance Ministry "borrowed" about 200 million shekels from the budget of the northern communities which they claim will be returned when the Knesset approves an amended budget. The mayors of the northern communities are doubtful they will see the once-allocated funds.
Moshe Davidovitz, chairman of the Northern Frontline Settlements Forum and head of the Mateh Asher Regional Council, told Ynet that the government is ignoring his region.
"The Israeli government passed a resolution in which the budget that was approved for us only three months ago for 2024 was cut by 940 million shekels, and now about 200 million shekels is being cut from it. The ink has not dried yet and they are already laundering the same money that was not given to us. This is absurdity while the north is the target of Hezbollah's attacks. The government is doing its thing, cutting funds. The sun is shining, the birds are chirping and we are invisible."
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משה דוידוביץ', ראש המועצה האזורית מטה אשר
משה דוידוביץ', ראש המועצה האזורית מטה אשר
Moshe Davidovitz, head of the Mateh Asher Regional Council
(Photo: Nahum Segal)
Another 40 million shekels, earmarked for the establishment of the University of Kiryat Shmona was diverted for the same "loan" by the Finance Ministry. Another 100 million shekels for the north's rehabilitation and development plan that was approved only recently, and tens of millions more to promote urban renewal were diverted for the government's budgetary plan

Finance Ministry 'overbudgets' for unused funds

Finance Ministry and government officials explained the budget cuts from the north's emergency budget would be returned in the future but the displaced northern residents are unwilling to believe such promises. According to northern officials, although they opposed the Finance Ministry's "over-budgeting" for "development purposes," and not immediate action, the ministry expanded the budget to take advantage of unused funds.
The northern mayors recognized the ministry's tactic, demanding the Prime Minister Office's director general be able to divert unused funds for the north, such as tens of millions of shekels for urban renewal in Kiryat Shmona and Shlomi, for urgent needs. However, with the Finance Ministry's trick, these funds will not be allocated for the north. The Finance Ministry has tried to quell the worries of mayors such as Davidovitz but to no avail.
"You don't care about 280,000 residents in 23 municipalities here," Davidovich said. "We are talking about the line of retreat in the north that has become a line of conflict. The line of retreat created here is supposedly outside the State of Israel. We will not allow this line to be the new border. We must fight against a government that does not see its citizens and in practice hurts them."
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