A major budget dispute has erupted between Israel’s Defense Ministry and Finance Ministry over the 2026 state budget, with defense officials demanding an additional NIS 40–45 billion, which would raise the defense budget to as much as NIS 188 billion.

Defense officials warn that without a budget agreement, the IDF faces growing damage to its operational readiness, including frozen construction of military positions in Gaza and southern Lebanon, delays in critical procurement, halted production of artillery shells, reduced reserve forces, and the suspension of key military systems due to a lack of spare parts. They also say future defense purchases from the United States could be jeopardized.

Defense Ministry Director General Maj. Gen. (Res.) Amir Baram accused the Finance Ministry of putting Israel’s long-term military readiness at risk by delaying funding decisions, warning that force-building efforts are already falling dangerously behind.

The Finance Ministry rejected the claims, saying the Defense Ministry has already received a record NIS 143 billion budget but exceeded it by tens of billions of shekels. Treasury officials argued that the military’s decision to cut spending on tanks and military outposts despite the unprecedented funding points to serious management failures and warned that continued overspending comes at the expense of higher taxes and cuts to education, healthcare, and welfare.

(YWN World Headquarters – NYC)