JERUSALEM - Israel's parliament, known as the Knesset, approved Tuesday the 2025 state budget, which amounts to 619 billion shekels (about $169 billion), excluding debt-servicing, the Finance Ministry said in a statement.

The budget was passed with a 66-52 margin, following long parliamentary debates that began on Monday evening. Its approval prevents the dissolution of the Knesset and the holding of snap elections right before the deadline of March 31.

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Of the total budget, the defense budget alone stands at a record 110 billion shekels, with education at 92 billion shekels and health at 60 billion shekels. The deficit ceiling is set at 4.9 percent of the gross domestic product.

The budget focuses on expanding support for reserve soldiers, providing rehabilitation and development for war-affected regions, accelerating hi-tech industries, combating black market capital, enhancing government services, and more.

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Finance Minister Bezalel Smotrich said the budget addresses "all the needs of the war, both on the frontlines and in the rear, until victory, while continuing to invest in infrastructure that encourages growth and reflects the fiscal responsibility required in times of war."

The budget debates coincided with demonstrations outside the parliament. Protesters blocked the main entrance and emergency exit using cars and sat on the floor in front of the barriers set up by the police.

They argued that the budget was unfair, particularly due to coalition allocations for specific sectors, such as support for Orthodox Jews, many of whom do not serve in the army. They claimed it disproportionately burdens the productive middle class and fails to address the rising cost of living.

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The demonstrators, in addition, demanded that the government act to return the 59 Israeli hostages still held by Hamas in the Gaza Strip.

The budget approval also ignited fury among opposition lawmakers. Earlier, opposition leader Yair Lapid denounced it as a "budget of thieves, at the expense of honest people," adding it was "the greatest robbery in the history of the country. The Israeli middle class is tired of being taken advantage of and not counted."

Ron Tomer, president of the Manufacturers Association of Israel, said the new budget "lacks significant reforms and growth engines, contrary to all economic logic."