Finance Committee Approves NIS 15 Billion for Defense Ministry

The Knesset Finance Committee approved the transfer of approximately NIS 15 billion to the Ministry of Defense and the IDF on Tuesday. The funds are part of budgetary adjustments for 2026, which were previously approved by the Committee for Arrangements. Of this amount, about NIS 11.75 billion will be allocated from the general reserve to the Ministry of Defense. The specific uses of these funds were detailed in a joint session with the Foreign Affairs and Defense Committee due to their classified nature. An additional NIS 3 billion was moved from various defense and transportation expense categories to the Ministry of Defense.

In response to committee demands, the IDF representative stated that claims of reduced processing days for reservists would be examined. The committee also mandated that NIS 40 million be allocated from the 2026 economic aid program to support public institutions whose income has been affected by the ongoing conflict and are not eligible for compensation under property tax laws. It was revealed during the discussion that this provision had not yet been implemented. Following a temporary halt in proceedings by Committee Chairman Hanoch Milwidsky, the Treasury announced that a system for these institutions to submit claims would open immediately after the Sukkot holiday.

The committee also approved three other requests: approximately NIS 801 million for the Ministry of Economy and Industry, and NIS 33 million in conditional expenditures for the Tax Authority, the Compensation Fund, and the Accountant General units. The majority of this funding, NIS 630 million, is designated for the actuarial balance of the Compensation Fund, to cover a projected cash deficit resulting from the compensation framework for businesses affected by Operation "Lion's Roar." Another NIS 164 million from the general reserve will go to the National Insurance Institute to cover payments to employees placed on unpaid leave during Operation "Lion's Roar." Finally, NIS 39 million in conditional expenditures were approved for the Coordinator of Government Activities in the Territories (COGAT), as part of internal budget adjustments within the Ministry of Defense.