Israel's Finance Minister Reveals Emergency Budget Funds Apache Helicopters
Translated & summarized from Bizportal by baba
Finance Minister Bezalel Smotrich revealed that Israel's emergency security budget will fund the purchase of 12 Apache helicopters and a NIS 2.6 billion cut for urgent needs. He stated the current deficit is around 3.2% of GDP, expected to end the year near 3.5%, below the 4.9% target. Smotrich also discussed involving institutional investors in defense projects and advancing an investment account reform to streamline savings products and encourage capital market investment.
The story in 6 lines · by baba
- Finance Minister Bezalel Smotrich announced emergency budget funds for 12 Apache helicopters.
- A NIS 2.6 billion cross-the-board budget cut is expected for urgent needs.
- Israel's current deficit is around 3.2% of GDP, projected to end the year near 3.5%.
- The 2026 security budget was increased by NIS 32 billion.
- Smotrich plans to involve institutional investors in defense projects.
- A reform aims to create a unified investment account for savings products.
Israeli Finance Minister Bezalel Smotrich announced that part of the emergency security budget passed will be used to finance the acquisition of 12 Apache helicopters. Speaking at the annual conference of the Investment Houses Association, Smotrich explained that the payment schedule for the deal necessitated bringing forward budgetary resources, with the amounts to be re-evaluated during the preparation of the 2027 budget. He also stated that the government is expected to approve a cross-the-board cut of approximately NIS 2.6 billion for urgent needs.
The 2026 security budget has already been significantly expanded due to the ongoing war, with the Knesset approving a deficit target of 4.9% of GDP. The 2026 budget was passed with an additional NIS 32 billion allocated to defense. Smotrich noted that the actual budget deficit is currently lower than the target, standing at around 3.2% of GDP, and he estimates the year will conclude near 3.5%.
Smotrich also discussed financing defense buildup, emphasizing a focus on increasing economic efficiency and integrating additional funding sources. One proposal is to involve institutional investors and investment houses more broadly in defense projects and related infrastructure. This could open a new investment avenue for pension, provident, and insurance funds, subject to deal structures, returns, and risks. The 2026 Defense Ministry budget is approximately NIS 143 billion, alongside significant future commitment authorizations.
Furthermore, Smotrich addressed the economy, attributing the shekel's strength partly to foreign investment and high-tech sector investments. He indicated the next phase should focus on shifting from war expenses to increasing business activity and credit. He also plans to advance an investment account reform to create a single framework for savings and investment products, reducing regulatory gaps and potentially moving funds from bank deposits to the capital market. The reform includes a unified investment account where transfers between products can be made with tax deferral up to a set ceiling, aiming to increase competition among financial institutions.
