True or false: If there is no budget, the state stops

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The budget, Arrangements Law and deadline

If the budget does not pass on time, the Knesset dissolves automatically.

The government prepares the state budget and submits a budget bill to the Knesset.

All steps in text

The government prepares the state budget and submits a budget bill to the Knesset.
Alongside it usually comes the Arrangements Law: one large law that changes many other laws to implement the budget.
If the budget does not pass by the end of March, the Knesset dissolves automatically and elections are held. A new government has 145 days from the day it was formed.

✗Common assumption If there is no budget, the state stops.

✓In practice Not immediately. Until the budget passes, ministries operate under a continuation budget based on the previous budget.

The government formed after the 2026 elections will have to pass a budget within a few months. This is its first test.

Updated on 28 October 2026. The explanations were rewritten in plain language using official sources and are not legal advice.

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