Finance Minister Smotrich Calls Apache Helicopter Deal a Mistake

Israel's government approved an urgent NIS 1 billion ($270 million) defense procurement deal for Apache helicopters for the IDF on Wednesday. Finance Minister Bezalel Smotrich stated at a conference that the deal is a mistake, noting he had expressed this to the ministerial committee for procurement. Smotrich argued that the functionality provided by Apache helicopters can be achieved through cheaper means, suggesting AI drones as a more cost-effective alternative for acquisition, maintenance, and operation. He explained that while the Prime Minister had decided on the purchase in August, a funding issue arose because the law prevents the accountant general from signing a commitment before funds are secured. To resolve this, a temporary budget source was identified from the five-year plan for the Arab community, a plan that has not yet been approved and is currently under moratorium. Smotrich emphasized that this funding maneuver is technical and that the budget discussions for 2027 will address the overall financial situation, as the defense establishment is significantly over budget. He also highlighted a disagreement with the defense establishment regarding efficiency, stating that the funds come from other sectors like health, welfare, and infrastructure, and that the current approach creates a deficit that everyone will bear. Smotrich expressed a desire for a larger rearmament package than what was previously agreed upon, mentioning his appointment of Mehran Forouzanfar as budget director to develop a plan for rearmament using capital market funds, which he believes would benefit the military, the economy, and national assets.