Defense Budget Talks Collapse Amid Dispute Over Funding Source

Defense Minister Israel Katz canceled a meeting with Opposition Leader Yair Lapid to discuss the defense budget after Lapid insisted on knowing the source of the proposed funds and demanded the presence of key economic advisors. Lapid requested that the economic advisor to the IDF chief of staff and the head of the budget division attend the meeting to clarify the budget's origin.

This latest breakdown follows a similar dispute about a week prior, when Prime Minister Benjamin Netanyahu asked Lapid to support a significant increase in the defense budget during an election period. Lapid agreed to support the measure only if the budget's source was identified and coalition funds allocated to Haredi (ultra-Orthodox) parties were reduced. Lapid stated his support for increasing the IDF's budget but insisted the funds should come from coalition budgets, which he described as "exorbitant."

Lapid argued that the budget source should not be increased taxes on the middle class and reservists. Instead, he proposed canceling "corrupt" coalition funds and the billions allocated to support Haredi draft evasion, stating that such changes would secure the opposition's support.

The Likud party countered Lapid's claims, calling them "baseless and false." They asserted that state revenues exceeded expectations due to the government's economic policies, resulting in a lower-than-expected deficit, which allows for an increase in the defense budget without raising taxes. The Defense Ministry declined to comment on the matter.