Israel's parliament passed the 2026 budget on Monday with a significant increase in military spending. The budget was approved with 62 votes in favour and 55 against, averting a potential government collapse and snap election. The total expenditure budget for 2026 amounts to approximately 850 billion Israeli shekels, or $270 billion.
The proposed budget includes an increase of over NIS 30 billion (about $10 billion) for the Ministry of Defence, bringing its total budget to over NIS 142 billion. This increase is attributed to ongoing conflicts with Iran and its allies. The budget also includes a three-percent cut across all other ministries.
Opposition leader Yair Lapid described the budget as "the greatest theft in the state's history," citing the allocation of six billion shekels to the coalition. Prime Minister Benjamin Netanyahu's government has been criticized for its handling of the war in Iran and its approval of increased funds for ultra-Orthodox parties and settlements.
The approval of Israel's 2026 budget with increased defense spending is a stark reminder of the country's ongoing conflicts and its reliance on military might. The allocation of billions of dollars to the Ministry of Defence, while cutting funds for other ministries, raises questions about the government's priorities. The fact that funding for settlements has remained unchanged, despite sweeping cuts to civilian budgets, is a clear indication of the government's commitment to its ultra-Orthodox and settler allies. This budget will have far-reaching implications for everyday Israelis, who will bear the brunt of the cuts to civilian services. The government's priorities are clear: security and politics over people.
