The Kabul Tribune (KT) — Reuters reports that Israel’s cabinet has approved the 2026 state budget, allocating 112 billion shekels (about $35 billion) for defense — a sharp increase from the earlier draft figure of 90 billion shekels.
The budget now heads to parliament for an initial vote, but Reuters says it is expected to face significant challenges as Israel’s government has grown increasingly polarized. Under Israeli law, the budget must be approved by March or automatic elections will be triggered.
The budget will now move to parliament for an initial vote, but according to Reuters, it faces an uphill path as Israel’s government has become increasingly polarized. Under Israeli law, the budget must be approved by March or new elections will be automatically triggered.
Over the past two years, parties within the ruling coalition have fractured over the Gaza war, the ceasefire that paused the fighting, and demands by ultra-Orthodox parties for exemptions from mandatory military service for seminary students.
Ministers held a marathon budget session starting Thursday. On Friday, the office of Defence Minister Israel Katz confirmed that funding for the Israel Defense Forces (IDF) had been increased.
“We will continue to act decisively to reinforce the IDF, fully meet the needs of the fighters and reduce the burden on reservists to ensure Israel’s security on every front,” Katz said, according to his office.
The Gaza war has placed a heavy financial burden on Israel. Reuters noted that the country spent about $31 billion in 2024 on its conflicts with Hamas in Gaza and Hezbollah in Lebanon. Israel has since reached ceasefire agreements with both groups.
According to Finance Minister Bezalel Smotrich’s office, the 2026 defense budget represents an increase of 47 billion shekels compared with 2023, before the Gaza war began.
“We are allocating a massive budget to strengthen the army this year, while also ensuring that Israel can return to economic growth and provide relief for citizens,” Smotrich said
