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". Data reveals that approximately 60% of the coalition funds earmarked for the current year have not yet been committed, presenting an opportunity to finance increased defense spending without necessitating cuts to public services.

This finding emerges amidst ongoing discussions about augmenting the defense budget, particularly following Operation "Arrow of Iron." Opposition leader Yair Lapid has proposed that the government cut coalition funds in exchange for his support for a larger defense budget, a proposal now appearing more feasible than initially thought.

Out of roughly 5 billion shekels designated for coalition funds in 2026, about 3 billion shekels, or 60%, remain uncommitted. This is considered a surprisingly high percentage for this point in the year, as such funds are typically allocated and disbursed much earlier.

Simultaneously, since April, when the debate over increasing the defense budget intensified, the government has approved numerous programs and budgets totaling hundreds of millions to billions of shekels. These allocations include significant sums for specific sectoral interests, even as the need for additional defense funding was apparent.

Notable government allocations since the defense budget increase demand 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.