Netanyahu's $90 Billion Defense Spending Plan Lacks Government Approval
Prime Minister Benjamin Netanyahu announced that Israel will invest 350 billion shekels (approximately $90 billion) over the next decade to build "armament independence," including domestic production of aircraft. He later reportedly increased this figure to 400 billion shekels and extended the timeline beyond ten years. However, this massive sum has not been approved as a budgetary item by the government or Knesset, nor is it the result of a comprehensive staff work that outlines costs, funding sources, and objectives.
This declaration stands in stark contrast to the recommendations of a government-appointed committee led by Professor Yaakov Nagel, which proposed an additional 133.3 billion shekels for defense over ten years. The discrepancy of 217 billion shekels between Netanyahu's announcement and the professional committee's findings raises questions about the origin and justification of the larger figure. The Nagel committee's report, submitted in early 2025, suggested an annual increase of 9 to 15 billion shekels.
Crucially, the 350 billion shekel figure was not discussed in any governmental forum. This lack of procedural process has become a point of contention, with Finance Minister Bezalel Smotrich reportedly opposing the defense establishment's demands and preferring that major decisions be deferred to the next government. The professional echelon within the Finance Ministry also believes such a dramatic increase would necessitate tax hikes.
Furthermore, Netanyahu's announcement clashes with fiscal rules. He allegedly dismissed the 'numerator' rule, which requires a funding source for every expenditure, and requested a change in these rules. This rule is designed to prevent budgetary commitments without secured funding, a situation that critics argue has occurred here. Commitments for future defense procurement totaling approximately 130 billion shekels have already begun to be issued based on the 350 billion shekel figure, despite the lack of a formal budget discussion.
Experts also question the feasibility of complete "armament independence," with some analyses suggesting it is overly ambitious and potentially impractical, potentially complicating the IDF's force-building efforts. While Israel needs a strong military, the article suggests that the scale of this proposed spending may be influenced by political considerations and policy choices, rather than solely by external security threats.
