Israel’s parliament has passed the state budget for the year, providing a boost to Prime Minister Benjamin Netanyahu amidst market instability resulting from the Gaza conflict and government attempts to dismiss top officials.

With 66 Knesset members approving the bill and 52 objecting, the budget's passage was crucial to prevent a government collapse as per Israeli law.

Despite initial uncertainties amid coalition disputes, the approval solidifies Netanyahu's position amid ongoing protests against his leadership.

Critics argue that recent government actions, such as removing the attorney-general and internal security chief, threaten democracy. Discontent also surrounds the decision to resume fighting in Gaza against Hamas after a two-month ceasefire.

Finance Minister Bezalel Smotrich touted the budget's provisions for growth and economic stability, claiming it includes necessary measures for success.

However, opponents argue that the budget favors conservative coalition agendas over economic concerns, further strained by the country's multiple conflicts since October 2023.

Opposition leader Yair Lapid condemned the budget as the "greatest robbery in the nation's history," accusing the government of harming the middle class and future prospects.

During the budget vote, some opposition members displayed images of Israeli captives in Gaza, denouncing the process as "shameful."

Protests outside parliament prompted calls for detainment by the Knesset speaker, underscoring the tensions surrounding the budget approval.

Following a month of market volatility linked to Gaza tensions and internal governmental conflicts, the budget's passage has somewhat stabilized the Israeli assets. The shekel has slightly rebounded against the dollar by approximately 1.2% this week.