The Defense budget is expected to increase by over nine billion euros, from a total budget of around 40 billion, more than double that of 2023.
The Israeli Parliament approved the 2026 budget on Monday, which significantly boosts defense resources as Israel is engaged in a multi-front war.
“As part of the budget update, and in light of the ‘Roaring Lion’ operation, over 30 billion shekels (around 8.3 billion euros) have been added to the Defense Ministry budget, bringing it to over 142 billion shekels,” the Parliament stated in a release. The Knesset members approved the budget with 62 votes in favor and 55 against.
The total proposed expenses for 2026 amount to around 850 billion shekels, approximately 235 billion euros. The country’s defense expenses have been steadily increasing since the start of the war in Gaza following the unprecedented attack by Hamas on Israeli territory on October 7, 2023.
Israel has also conducted attacks against Iran since February 28 and in southern Lebanon. During the debates preceding the vote, the far-right Finance Minister Bezalel Smotrich labeled the moment a “historic turning point for Israel, redefining both our security approach and our economy.” “We have the capacity to reshape the Middle East. This budget puts the nation in a position to win,” declared Mr. Smotrich.
In contrast, the main opposition leader, Yair Lapid, called this budget the “largest theft in the state’s history.”
“Six billion shekels are coalition funds that this government attributes to itself – for corruption and evading military service,” he asserted. “The Israeli people are not fools. They understand that this budget is a windfall for the corrupt and those who shirk their responsibilities – partying on our dime,” he added.
Earlier this week, Mr. Lapid strongly criticized the government for its handling of the Iran war, particularly denouncing delays in passing a law to mobilize ultra-Orthodox Jews, who are currently largely exempt from military service. This law aligns with the demands of a large majority of Israelis who increasingly oppose exemptions for the ultra-Orthodox.
Prime Minister Benjamin Netanyahu, relying on ultra-Orthodox party allies to stay in power, is maneuvering to delay the adoption of this law. Moreover, the increase in defense spending will result in a 3% reduction in all other ministries, also condemned by Yair Lapid.
However, Netanyahu’s government has approved a significant increase in funds earmarked for ultra-Orthodox and settlers to secure their support. Ultra-Orthodox parties will receive over 652 million additional euros for the private schools they control.
Despite drastic cuts imposed on all civil budgets, funding for settlements remains unchanged, according to an anti-settlement group Peace Now report. This move has been criticized as a “bold daylight robbery of public funds” benefiting a small group within the government’s base.
On December 4, the government decided to invest over 761 million euros in the next five years in developing settlements in the occupied West Bank, deemed illegal under international law.
