Overview
- The government approved a 2026 state budget totaling NIS 662 billion, incorporating the NIS 112 billion defense allocation reached overnight by the Defense and Finance Ministries.
- The defense figure is well below the initial request of roughly NIS 140 billion, reflecting a negotiated compromise between Defense Minister Israel Katz and Finance Minister Bezalel Smotrich.
- A separate determination adds NIS 350 billion to defense over the next decade outside the annual budget, according to the announcements.
- An additional NIS 725 million, spread over three years, was earmarked for security infrastructure in Judea and Samaria and along the eastern border.
- The framework includes an enforcement clause imposing across-the-board cuts if defense outlays exceed targets, and the budget now moves to the Knesset, which must pass it by the end of March to avoid elections.