Israel Faces a Potential 188 Billion Shekel Defense Budget After War Costs Mount

Since the late-February war with Iran, Israel has already paid about 50 billion shekels for the conflict, according to the article. That figure includes Air Force bombs and missiles used in strikes on Iran, interceptor costs against ballistic missiles fired at the Israeli home front, and the military’s move into a “security buffer” in Lebanon after Hezbollah joined the fighting.

The piece says every day Israel remains in the current strategic and political limbo costs more than 100 million shekels. At the same time, the dispute over the 2026 defense budget remains unresolved, with the Israel Defense Forces and the defense establishment demanding an additional 44 billion shekels, bringing the total request to 188 billion shekels. Prime Minister Benjamin Netanyahu has held discussions with senior Finance Ministry and Defense Ministry officials, but no decision has been reached, and a planned meeting for last weekend was canceled.

The article portrays a deep budgetary stalemate between the two ministries, with neither side backing down. It says each camp believes it is protecting Israel, even as the country’s front lines and financial commitments expand.

Finance Minister Bezalel Smotrich, who also sits in the security cabinet and serves in the Defense Ministry, called the agreement with Iran “bad” and said, “we will need to continue the campaign to topple the Iranian regime ourselves.” The article notes that he did not explain where the money or the additional troops for a prolonged multi-front campaign would come from.

The writer argues that Israel is now stuck with open fronts in Gaza, Syria, and Lebanon, alongside a more violent Iran, and will face long-term defense spending, repeated rounds of fighting, and major disruption to the economy. It warns that the demand for a 188 billion shekel defense budget may not be the last.