Adalah to Israeli Finance Ministry: Smotrich’s Decision to Withhold Budgets from Arab Local Authorities is Illegal
On 8 August 2023, Adalah - The Legal Center for Arab Minority Rights in Israel sent a letter to the Legal Advisor of the Ministry of Finance, on behalf of the National Committee of the Heads of Arab Local Authorities in Israel ("the Arab Mayors’ Committee"). The letter called for the Legal Advisor’s immediate intervention in order to ensure the prompt transfer of funds guaranteed to Arab local authorities under Government Resolution 550 - "The economic plan to reduce gaps in the Arab community by 2026”.
CLICK HERE to read Adalah’s letter
The Israeli government passed Resolution No. 550 in October 2021. Among its stated objectives, the Resolution aims to “reduce gaps between Arab society and the general population across various sectors”, including through economic development at the local level. To that end, the resolution stipulates that a sum of 200 million NIS (approximately 54 million USD) shall be allocated annually for the purpose of increasing the budget of Arab local authorities. Moreover, the resolution stipulates that an additional sum shall be allocated for the purpose of the development of local authorities.
On 7 August 2023, the Minister of Finance, head of the far-right, extremist Religious Zionist Party, Bezalel Smotrich, announced that he refuses to transfer the budgets guaranteed to Arab local authorities pursuant to Resolution 550. These funds are the above mentioned annual 200 million NIS for Arab local authorities, as well as funds aimed at advancing the economic development of these authorities.
This pronouncement comes after the current government has committed – as explicitly stated in its coalition agreements – to withdraw its long-term budgetary commitments to Palestinian localities in Israel under Resolution 550.
CLICK HERE to read Adalah’s analysis of the coalition agreements
In the letter, Adalah Attorney Salam Irsheid argued that Smotrich’s decision is arbitrary and illegal. Adalah argued that Government Resolution 550 was passed against the backdrop of severe economic disparities between Palestinian and Jewish local authorities in Israel. This is rooted in historical systemic discrimination against Arab localities, as evident in land and budget allocation. Smotrich's decision to withhold these funds, without providing any legitimate rationale, is arbitrary, neglects vital professional considerations, and has no factual basis.
Furthermore, Adalah highlighted that Smotrich's decision contradicts a previous governmental commitment which local authorities have relied upon. Adalah thus noted that Smotrich's unsubstantiated and unfounded claims that budgets allocated to Palestinian local authorities “fall into the hands of crime and terror organizations” cannot justify withholding these funds.
Adalah demanded that the Legal Advisor to the Ministry of Finance immediately intervene to ensure the transfer of the funds, noting that if the funds are not transferred, the local authorities will be left with no option but to pursue remedy through subsequent legal action.
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