Israeli Defense Ministry Chief Warns of Dangerous Military Capability Gap with Iran Amid Budget Dispute

Amid ongoing budget disputes between Israel's Defense Ministry and Finance Ministry, Defense Ministry Director Amir Baram warned at the Herzliya Conference that Israel's long-term military buildup is dangerously lagging behind Iran's rapid military investments. Baram highlighted that Iran's military spending this year alone matches Israel's decade-long defense enhancement plan, criticizing bureaucratic delays that hinder strategic implementation. He emphasized that the Finance Ministry's budget department treats the current security reality as a "passing accounting event," undermining government decisions already made to increase defense funding.

Baram called for immediate implementation of the 350 billion shekel (approximately $100 billion) decade-long force buildup plan previously endorsed by Prime Minister Benjamin Netanyahu and Defense Minister Israel Katz. This plan aims to accelerate the Israel Defense Forces' (IDF) procurement of interceptors, offensive munitions, intelligence resources, and restoration of worn-out land and air units. He stressed that such a large-scale buildup requires budgetary certainty over the next ten years.

The current defense budget stands at 143 billion shekels, while the Defense Ministry demands an immediate increase of about 40 billion shekels to reach 183-188 billion shekels, enabling the IDF to fulfill its missions, including maintaining security zones in Lebanon, Gaza, and Syria. Baram also warned against the Finance Ministry's refusal to fund a multi-billion shekel reform transforming the Rehabilitation Department into a National Rehabilitation Authority under the Defense Ministry, citing societal responsibility to support wounded veterans.

Earlier reports revealed that the National Security Council proposed a phased 40 billion shekel defense budget increase by the end of 2026, but the plan remains unapproved. Prime Minister Netanyahu is expected to mediate the dispute soon. The Finance Ministry responded by asserting it has allocated an unprecedented defense budget and criticized the Defense Ministry for resisting basic budget oversight and transparency, which they say burdens Israeli citizens with higher taxes and cuts to essential civilian services like education, health, and welfare.