Israel’s cabinet approved the 2026 state budget on Friday, including 112 billion shekels ($35 billion) for defence. This marks a major increase from the earlier draft of 90 billion shekels. The budget now goes to parliament for an initial vote before the March deadline.
The approval comes amid heightened tensions following costly conflicts with Hamas in Gaza and Hezbollah in Lebanon. Israel spent $31 billion on military operations in 2024. Defence Minister Israel Katz said the funds would strengthen the army and reduce the burden on reservists.
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Finance Minister Bezalel Smotrich added that the budget aims to boost security while allowing economic growth and relief for citizens. He highlighted that the allocation has risen by 47 billion shekels compared to 2023, before the Gaza war.
The government faces internal challenges as coalition parties remain divided over military service exemptions for ultra-Orthodox students and the Gaza ceasefire terms. Parliament’s approval is uncertain, and failure could trigger elections.
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Officials emphasized that the defence funding ensures Israel is prepared on all fronts. The budget is framed as both a response to recent conflicts and a long-term plan for national security.