Finance Minister Smotrich Announces Additional NIS 2.6 Billion Budget Cut
Translated & summarized from Walla by baba
Finance Minister Bezalel Smotrich announced the government will approve an additional NIS 2.6 billion budget cut for urgent defense needs. This follows a recent NIS 1 billion allocation for classified procurement, partly funded by diverting money from Arab community development programs. The defense establishment had requested a significant budget increase, and civilian budgets are increasingly being used to cover security expenses. Smotrich also stated his desire to remain Finance Minister in the next government.
The story in 5 lines · by baba
- Finance Minister Bezalel Smotrich announced an additional NIS 2.6 billion budget cut for defense needs.
- NIS 1 billion was recently approved for urgent defense procurement via a WhatsApp poll.
- Funds for the NIS 1 billion procurement were diverted from the Arab community development plan.
- The defense establishment requested an additional NIS 40 billion for the 2026 budget.
- Smotrich expressed his intention to continue as Finance Minister in the next government.
Finance Minister Bezalel Smotrich announced Wednesday that the government is expected to approve an additional budget cut of NIS 2.6 billion for urgent defense needs. Speaking at the annual conference of the Association of Investment Houses, Smotrich criticized the defense establishment, stating his disagreement is not with the need for rearmament but "with the way to carry it out economically efficiently."
His remarks followed a rapid morning decision where ministers approved NIS 1 billion via a WhatsApp poll for classified, urgent defense procurement. A significant portion of this sum was funded by diverting resources from a five-year plan designated for developing the Arab community, a move that drew sharp public and political criticism.
Smotrich's comments come amid tense negotiations over the 2026 defense budget. In July, the Treasury and Defense Ministry reached a temporary compromise to allow immediate procurement without exceeding the budget framework or increasing the deficit. The defense establishment had initially demanded an additional NIS 40 billion beyond the base budget of NIS 143 billion, aiming for a record NIS 183 to 188 billion, citing the new security reality, restocking needs, and rehabilitation reforms.
The recent fund transfers add to a series of swift budgetary changes by the government. In July, NIS 497 million was reallocated from the Arab community's five-year plan to the police and Shin Bet for crime fighting. Civilian and social budgets are now repeatedly being tapped as available sources during emergencies.
Beyond the financial figures, Smotrich used the platform to declare his intention to continue as Finance Minister in the next government. The economic sector is closely monitoring reports of the planned NIS 2.6 billion cut, with the key question being which ministries and civilian services will bear the brunt this time and whether the defense establishment's persistent demands will continue to erode Israel's fiscal frameworks.
