Treasury: Billions in Coalition Funds Can Be Redirected to Defense

Israel's Ministry of Finance has indicated that billions of shekels allocated for coalition agreements can be redirected to bolster the defense budget, according to a report by 'Sheva'. Approximately 60% of the coalition funds designated for the current year have not yet been committed, presenting an opportunity to finance increased defense spending without necessitating cuts to public services.

Data reveals that out of roughly 5 billion shekels earmarked for coalition funds in 2026, about 3 billion shekels, or 60%, remain uncommitted. This figure is considered unusually high for this point in the year, as most funds are typically already allocated and disbursed.

This finding emerges amidst opposition leader Yair Lapid's call for Prime Minister Benjamin Netanyahu to cut coalition funds in exchange for support for a defense budget increase. The report suggests Lapid's proposal is more feasible than initially perceived.

Furthermore, since April, when discussions about increasing the defense budget began following Operation 'Sayeret Ha'ari', the government has approved numerous programs and budgets totaling hundreds of millions to billions of shekels. Notable allocations include 399 million shekels for local authorities, 378 million shekels for access roads to new West Bank settlements, 100 million shekels for Jewish education abroad, and 57 million shekels for Jewish identity initiatives, among others.