Israel Approves $700 Million Budget Cuts for Defense Purchases

By ליאת רון

Translated & summarized from Walla by baba

CenterNeutral tone

Hebrew · 12 newsrooms covering

The Israeli government will approve NIS 2.6 billion in budget cuts across ministries for urgent defense purchases, including NIS 575 million from education, health, and welfare. Sources call the cuts "technical," with potential for later offsetting funds. This follows a prior NIS 1.03 billion allocation for defense, bringing the total to NIS 3.6 billion. The cuts are intended for 2026 security needs, though concerns were raised about late-year impact on public services.

The story in 6 lines · by baba

Israel's government will cut NIS 2.6 billion from ministry budgets for urgent defense needs.
Education, health, and welfare ministries will face significant budget reductions.
Sources describe the cuts as 'technical,' with potential for future offsetting funds.
The decision facilitates the purchase of Apache helicopters and other classified defense equipment.
This is the second major budget cut this year, following a 3% reduction in March.
The cuts are designated for 2026 security requirements.

Israel Approves $700 Million Budget Cuts for Defense Purchases — Editorial illustration generated by baba News, not a photograph of the event.

The Israeli government is set to approve a sweeping NIS 2.6 billion (approximately $700 million) budget cut across various ministries on Tuesday, to fund urgent defense procurement. The Ministry of Education will lose NIS 285 million, the Ministry of Health NIS 150 million, and the Ministry of Welfare NIS 140 million. The Ministry for National Security will also see NIS 225 million cut, and the Ministry of Transportation approximately NIS 423 million, along with reductions for the Ministries of Economy, Agriculture, and Energy.

Sources close to the matter describe the cut as "technical" for now, suggesting that a budgetary source will likely be found later in the year to offset the reductions. If a substitute funding source is identified by year's end, the planned impact on ministry budgets could be averted. The decision aims to facilitate immediate defense purchases, with security officials warning that delays could compromise responses to urgent needs.

This move follows a recent approval of approximately NIS 1.03 billion for defense procurement, largely diverted from a five-year plan for Arab society development and the 2026 budget. The funds are intended to advance the acquisition of 12 Apache helicopters from the United States, a deal stalled by a budget dispute between the Finance and Defense ministries.

Finance Ministry's legal advisor, Dudi Koppel, found no legal impediment to the decision but noted alternative funding methods with less impact on ministry operations. The professional echelon at the Finance Ministry had recommended cutting coalition funds instead of ministry budgets, a suggestion that was not adopted. The legal opinion also highlighted the cuts occurring late in the budget year, with less than three months remaining, and advised ministers to consider the potential impact on public services before approving the measure.

This is the second such broad budget cut this year. In March, a 3% cut led to reductions in education, health, and welfare budgets, and NIS 600 million was cut from the transportation budget. The current proposal specifies that the funds are for 2026 security needs only and do not alter government priorities.