Israel's Military Facing Critical Shortages Amid Budget Disputes

Israeli Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich have approached opposition leader Yair Lapid to secure support for an approximately 40 billion shekel allocation to the Israel Defense Forces (IDF). The funds are urgently needed for the army's ongoing operations and to replenish its capabilities after three years of conflict. The urgency was highlighted during a security briefing on September 14, 2026, where Netanyahu personally urged Lapid's backing, recognizing that passing such a significant budget change during an election period without opposition consent is nearly impossible.

According to Ynet military correspondent Yossi Yehoshua, the IDF leadership has repeatedly warned political leaders over the past year about a deficit of tens of billions of shekels and its severe implications for national security. The army is reportedly entering its fourth year of war with critically depleted reserves, systems, and personnel, facing simultaneous threats from Iran, Hezbollah, Hamas, Syria, and Yemen. A major concern is the acute shortage of ammunition and the need to restock depleted warehouses. Security officials are also worried about the potential halt of production lines at Israeli defense companies due to a lack of approved funding, precisely when the military needs to rebuild its strength.

The proposed ten-year plan to bolster the IDF is estimated at 350 billion shekels. While the Finance Ministry has expressed concerns about its scale, security officials argue that allocated funds have primarily covered wartime expenses and current needs, not the necessary buildup of military power. The situation is exacerbated by ongoing friction with the Finance Ministry, which security officials believe is exploiting the IDF's inability to publicly disclose all its needs.

IDF Chief of Staff, his deputy, and the head of the Planning Directorate have been warning the political leadership for months. Deputy Chief of Staff Maj. Gen. Tamir Yadai noted in a recent document that the IDF's austerity measures are already damaging its operational capacity. The Chief of Staff starkly described the situation as "the treasury is empty." Potential consequences include cuts to readiness programs, prioritization of essential operational needs, postponement of long-term enhancement projects, and reduced investment in infrastructure and new defense concepts.

Netanyahu and Smotrich have agreed on the need for additional funds, but the 40 billion shekels require legislative changes that are difficult to pass during elections. If not approved now, the IDF might have to wait for a new government to be formed, a process that could take up to six months, during which crucial programs would be delayed. Netanyahu insists on opposition consent and a Knesset plenary session, despite the election period. Critics argue the government knew about the problem for months but failed to act.

Lapid stated he supports funding for the IDF but opposes tax increases on the middle class and reservists. He demanded the cancellation of coalition expenditures and the cessation of funding for Haredi draft dodgers, promising support for the bill if these conditions are met. The Likud party accused Lapid of misleading the public and claimed the defense budget can be increased without raising taxes. Defense Minister Israel Katz urged Lapid not to link security to budget disputes, stating that funds are available and only require Knesset approval. Gadi Eisenkot, head of the National Unity party, echoed Lapid's stance, criticizing the government for not addressing the IDF's warnings about ammunition, personnel, and budget shortages, suggesting coalition funds could have been redirected to the military.