Overview

• Cabinet approval adds about NIS 31 billion to the 2025 budget, with nearly NIS 28 billion directed to defense.
• The package sets roughly NIS 1.6 billion for Gaza humanitarian aid, NIS 200 million for victim compensation, and about NIS 3 billion in flexible war reserves.
• Financing relies on reduced coalition allocations and tax benefits, alongside a 3.35% across-the-board ministry cut beginning in 2026.
• The Finance Ministry removed about NIS 800 million from Ofek Chadash funding for chareidi educational institutions.
• The government meeting saw heated exchanges among ministers, and finance officials warned a broader ground campaign could add tens of billions of shekels and swell the deficit.