Israeli Knesset Committee to Approve $4 Billion Defense Budget Increase

The Knesset Finance Committee is set to convene on Wednesday to approve a significant budget transfer, including an approximately NIS 15 billion (about $4 billion) increase for the defense establishment. This substantial allocation is intended to rearm the Israel Defense Forces (IDF) following three years of conflict and two costly confrontations with Iran, as well as to fund tens of thousands of reservists. The transfer, initially approved by the government two months ago, was frozen in the Knesset on August 2nd.

The approval is expected to pass due to agreements reached between the ruling coalition and the opposition within the "Agreement Committee," a requirement under law in the 90 days preceding an election. However, a larger budget increase, exceeding NIS 25 billion, remains contentious. The sticking point is the disagreement between Prime Minister Benjamin Netanyahu and Opposition Leader Yair Lapid over the source of the required budget cuts, with Lapid refusing to support the increase without broad cuts to coalition funds.

MK Vladimir Belyak, the opposition's representative on the committee, stated that the opposition will only approve pre-agreed items and will strongly oppose any last-minute additions. Alongside the defense budget, the committee will also consider other significant transfers: NIS 164 million for the National Insurance Institute to cover benefits and return grants for evacuees, NIS 72 million for the National Security Ministry for its headquarters and the community security authority, and NIS 40 million for the Ministry of Construction and Housing from the prison service budget.

Further allocations include NIS 46 million for the Ministry of Jerusalem and Tradition to fund infrastructure and the Lag Ba'omer festival in Meron, NIS 25 million for the Survey of Israel for mapping and registration of Area C and East Jerusalem, NIS 6 million from the welfare budget for disconnected Haredi youth, and approximately NIS 800 million for the Ministry of Finance, including NIS 630 million to balance the compensation fund.