The additional fiscal measures, which total around 30 billion shekels ($8 billion or Ksh.1.2 trillion), passed with 59 votes in favour and 44 against in the 120-seat parliament.
Of the additional funds, 17 billion shekels are earmarked for supporting Israel’s war effort.
The remaining 13.5 billion shekels will support civilians impacted by the conflict.
It comes three months into Israel’s war against Hamas in the Gaza Strip, aimed at destroying the militant group after its shock October 7 attacks which Israeli officials say killed around 1,200 people, mostly civilians.
The Hamas-run health ministry in the Palestinian territory says more than 18,700 people, mostly women and children, have been killed in the conflict.
Most of the civilian funding is earmarked for residents of southern Israeli communities targeted by Hamas in its attacks.
However, some has been allocated to inhabitants of areas near the Lebanon border, who have been subjected to almost daily rocket attacks by Hezbollah, the Lebanese militant group allied to Hamas.
Around 250,000 people living in these “active combat zones” have been evacuated.
That funding will cover both security and other needs, including shelters, hospitals and emergency services.
The overall 2023 budget, which totals around 600 billion shekels, had been the subject of tense discussions with far-right and religious coalition partners before elements of the centre-right opposition joined to form a national unity administration.
The budget was denounced by opposition leader Yair Lapid, who previously rejected an offer to join the emergency government.
At the heart of the controversy is a discretionary fund of 14 billion shekels shared between the parties of the pre-war government.
Hundreds of millions of shekels from that fund have been earmarked for ultra-Orthodox communities as well as Jewish settlements in the occupied West Bank, which are considered illegal under international law.
