Israeli Defense Establishment Demands Record Budget Increase Amidst Treasury Resistance

The Israel Defense Forces (IDF) is struggling to operate within its current budget and has begun releasing reservists and avoiding costly military operations. This comes as the defense establishment demands an immediate budget increase from 144 billion shekels to a record 183 billion shekels. The Treasury rejects this demand as "completely excessive and illogical," stating that the defense budget agreed upon in March already accounts for ongoing conflicts.

The dispute centers on the enormous sums involved, which would require sharp cuts to civilian budgets such as education, health, and welfare, and delay critical infrastructure projects. The Treasury denies accusations of delaying decisions to avoid transferring funds before upcoming elections, while defense officials emphasize the need for increased readiness due to recent escalations, including the war with Iran starting in April and expanded IDF deployments in Lebanon and Gaza, covering areas comparable in size to Singapore.

The IDF has been reducing its reservist force from a peak of 120,000 to around 64,000, aiming to further cut to 50,000 due to financial constraints. The defense establishment highlights that the costs of maintaining forces on seven fronts, including distant ones like Iran and Yemen, justify the requested budget increase. They also note that the Treasury’s own budgetary advisor proposed adding 12 billion shekels from reserves, but the military rejected this as insufficient.

Recent talks scheduled at the Prime Minister’s office have been repeatedly canceled amid the deadlock. Defense officials warn that parts of the military are paralyzed and quote the Chief of Staff saying the army is "collapsing inward," mainly due to severe manpower shortages. The Treasury maintains that additional funds will be provided within the approved budget framework and that the defense budget will remain within the state budget limits. The final decision on the budget increase is expected soon, likely involving Prime Minister Benjamin Netanyahu.

This budget conflict reflects the tension between maintaining national security amid ongoing multi-front conflicts and managing fiscal responsibility ahead of elections, with potential impacts on Israel’s credit rating and civilian services.