Fri Dec 05 15:38:00 UTC 2025: Summary:

The Israeli cabinet has approved the 2026 state budget, including a significantly increased defense budget of 112 billion shekels ($35 billion). The budget now faces a challenging path through parliament due to political polarization over issues like the Gaza war and military service exemptions. The increased defense spending aims to strengthen the Israeli Defence Forces and address the needs of fighters, with the Gaza war having been a costly endeavor for Israel in 2024.

News Article:

Israeli Cabinet Approves 2026 Budget, Boosts Defense Spending Amid Political Gridlock

JERUSALEM – The Israeli cabinet has approved the 2026 state budget, earmarking a substantial 112 billion shekels ($35 billion) for defense, officials announced Friday. The increase, up from 90 billion shekels in a previous draft, aims to bolster the Israeli Defence Forces (IDF) following the costly conflict in Gaza.

However, the budget faces a difficult path through parliament. Deep political divisions within Israel’s government, stemming from disagreements over the Gaza war ceasefire and exemptions from mandatory military service for ultra-Orthodox Jewish seminary students, could derail its approval. Law dictates that the budget must be passed by March, or new elections will be triggered.

Defense Minister Israel Katz’s office emphasized the need for the increased spending, stating that it would “reinforce the IDF… to ensure the security of the State of Israel on every front.” Finance Minister Bezalel Smotrich added that the budget would “return the State of Israel to a path of growth and relief for citizens,” despite the significant investment in defense. The 2026 defense budget marks a 47 billion shekel increase compared to 2023, prior to the Gaza war.

The conflict with Hamas and Hezbollah in Lebanon cost Israel $31 billion in 2024 alone. Ceasefire agreements have since been reached with both groups.

Read More