Israel Can Reallocate Coalition Funds to Boost Defense Budget

Approximately 60% of coalition funds allocated for the current year have not yet been committed, presenting an opportunity to redirect these funds towards increasing the defense budget without necessitating cuts to public services. This revelation comes as the government has approved hundreds of millions to billions of shekels in new budgets since April, even as discussions about a defense budget increase were ongoing.

Opposition leader Yair Lapid has called for cuts to coalition funds as a condition for supporting a defense budget increase. Data from the Ministry of Finance indicates that out of approximately 5 billion shekels designated as coalition funds for 2026, about 3 billion shekels remain uncommitted. This is considered a surprisingly high percentage for this point in the year, as such funds are typically already allocated and transferred.

Despite the ongoing debate over defense spending, particularly following Operation 'Swords of Iron', the government has continued to approve significant funding for various projects. Notable allocations since April include 399 million shekels for local authorities, 378 million shekels for access roads to new settlements in Judea and Samaria, 100 million shekels for Jewish education abroad, 57 million shekels for Jewish identity initiatives, 54 million shekels for Haredi kindergartens, 30 million shekels for the Mamilla pool, 18 million shekels for rabbinical courts, and 18 million shekels for Jerusalem tourism.