Israeli Government Cancels Discussion on Urgent Defense Budget Increase Proposed by Netanyahu

The Israeli government will not discuss the proposed state budget override and defense budget increase tomorrow, casting doubt on Prime Minister Benjamin Netanyahu's recent initiative. Netanyahu had urgently called for a tens-of-billions-shekel boost to the defense budget to meet pressing military procurement needs, a position supported by Finance Minister Bezalel Smotrich. Despite their agreement to raise the defense budget by at least 25 billion shekels to approximately 183 billion shekels, the scheduled government discussion was canceled without presenting the required decision document to ministers.

The original defense budget for 2026 was set at 111 billion shekels but was increased by 32 billion shekels in March following defense demands, reaching 143 billion shekels. Subsequent partial approvals raised it by another 15 billion shekels to 158 billion shekels. Recent talks between Netanyahu and Smotrich aimed to add an additional 40 billion shekels, including the 25 billion shekels planned for immediate approval, pushing the total near last year's record high of 186 billion shekels.

This proposed budget override would not have involved further cuts to other government ministries or new taxes, which had already faced significant reductions during the war years. However, the Finance Ministry has indicated that the 2027 budget will require painful cuts and tax increases, decisions expected to be made by the incoming government.

It remains unclear whether Netanyahu's defense budget proposal will be postponed or canceled entirely, as the government refrains from addressing the matter ahead of upcoming elections.