Defense Budget Talks Collapse Amid Funding Source Dispute

Defense Minister Israel Katz canceled a meeting with opposition leader Yair Lapid to discuss the approval of the defense budget. The cancellation came after Lapid insisted on knowing the source of the proposed budget funds and demanded the presence of the IDF's economic advisor and the head of the budget division at the meeting.

This incident follows a political dispute a week prior, where Prime Minister Benjamin Netanyahu asked Lapid to advance a plan to transfer significant funds to the military during the election period. Lapid stated the opposition would support the move only if the budget source was presented and coalition funds for Haredi (ultra-Orthodox) parties were reduced. Lapid argued that coalition funds, which he described as "exorbitant," should be cut instead of raising taxes on the middle class and reservists.

Netanyahu had requested the deputy chief of staff attend the meeting to update Lapid on the urgency of the matter. However, Lapid maintained that no legislative changes were necessary and reiterated his demand for cuts to coalition funds, which he characterized as financing draft evasion. Several attempts to reach agreements with the opposition leadership have reportedly been rejected.

The Likud party countered Lapid's claims, stating he was misleading the public and that his allegations were "baseless and false." They asserted that state revenues were higher than expected due to the government's economic policy, resulting in a lower-than-expected deficit, which allows for an increase in the defense budget without tax hikes. The Defense Minister's office declined to comment on the report.