Israel’s security cabinet approved a budget of 1.3 billion shekels ($434 million) for establishing 34 new settlements in the occupied West Bank, ​right-wing Finance Minister Bezalel Smotrich said on Tuesday, adding to ‌tensions over territory widely viewed as central to a potential Palestinian state.

UN bodies, Palestinians and most countries view the settlements as illegal under international conventions - a stance ​disputed by Israel - and a primary obstacle to peace.

Smotrich, who has ​long opposed Palestinian statehood, is head of the Religious Zionism ⁠party that draws much of its support from settlements and is ​running in the upcoming legislative election on October 27.

The planned settlements would ​bring the total established under his four-year tenure to 103. Smotrich said another 1.075 billion shekels would be approved to pave roads to the new settlements. Last month, ​government ministers referred the settlement funding plan to the security cabinet.

Smotrich called ​the cabinet’s decision historic and a “day of celebration for Israel and settlements”, thanking Prime ‌Minister ⁠Benjamin Netanyahu for his support. Opinion polls point to Netanyahu losing in the October election.

“We are strengthening the security of the State of Israel, killing the idea of establishing a terrorist state in the heart of ​the country, and strengthening ​our hold ⁠on the homeland in Judea and Samaria,” Smotrich said in a statement, using the biblical term for the West ​Bank.

There has been a rise in settler violence in recent ​months against ⁠Palestinians and their property.

About 700,000 Israeli settlers live among 2.7 million Palestinians in the West Bank and East Jerusalem. Israel has not extended sovereignty to ⁠the ​occupied West Bank, while refuting international objections ​to the settlements and arguing that it is a disputed territory where Jews have lived for ​thousands of years.