IDF to Cut Intelligence Gathering and Reserve Forces Amid Budget Dispute with Finance Ministry

Senior Israeli military officials announced on Thursday that starting early September, the Israel Defense Forces (IDF) will implement significant cuts affecting national security due to delays in defense budget transfers from the Finance Ministry. The first immediate measure involves a sharp reduction in reserve forces in the northern and southern commands, while maintaining full reserve strength in the sensitive Judea and Samaria Division amid heightened tensions and security alerts.

The second major cut targets intelligence collection capabilities, especially costly technological and space-based systems used in third-circle theaters. The third step prepares for potential escalations involving Iran and allied groups such as the Houthis in Yemen and pro-Iranian militias in Iraq, requiring ongoing training, spare parts, and appropriate armaments.

These measures come in response to the Finance Ministry's failure to deliver the agreed 15 billion shekels out of the 40 billion shekels promised for the next four months, despite Prime Minister Benjamin Netanyahu's directives. A senior security source warned that without timely budget approval, Israel risks losing critical arms procurement deals and production lines in the US, affecting air, land, and sea defense projects, including long-term programs in space and air defense.

The source emphasized that the government has only 145 days to approve a new budget, or the IDF will face a year of setbacks in force building and operational readiness. The Finance Ministry is criticized for holding budget reserves but not fulfilling government agreements to support the Defense Ministry and IDF's urgent funding needs.

Unless the Finance Ministry complies with the Prime Minister's instructions, further negative impacts on the military's structure and procurement processes are expected to follow next week.