Israel’s ruling coalition wants next year’s budget to take the country “from conflict to growth” and estimates the deficit will shrink now that a ceasefire with Hamas has been secured, Finance Minister Bezalel Smotrich said.
The government intends to roll back some of the tax measures imposed to help fund the two-year war in Gaza, easing the burden on working Israelis, Smotrich said at a Tuesday briefing on Israel’s budget framework for 2026. He plans to introduce a permanent windfall levy on banks whose profit margins are “unprecedented,” he said, without giving a timeline for the change.