Israel adds US$10 billion to its war chest with defence budget increase

An Israeli soldier walks on the rubble caused by an Iranian missile strike on Tel Aviv, Israel, on March 24.

Photo: dpa Israel’s parliament approved the country’s 2026 budget early Monday, providing for a significant increase in military spending as the country remains engaged in wars on multiple fronts.

Lawmakers passed the budget with 62 votes in favour and 55 against.

The vote averted an automatic government collapse and snap election that would have followed failure to pass the budget by March’s end, under Israeli law.

The proposed total expenditure budget for 2026 amounts to around 850 billion Israeli shekels (US$270 billion).

More than 30 billion shekels (US$9.6 billion) had been added to the defence ministry’s budget “in light of Operation ‘Roaring Lion’” bringing the total defence budget to more than 142 billion shekels, the parliament said in a statement, using Israel’s name for the war with Iran.

Israel’s defence spending has steadily increased since the war in Gaza broke out following Hamas’ attack on Israel on October 7, 2023.

Smoke rises following an Israeli air strike on a village in southern Lebanon on Saturday.

Photo: AFP In addition to fighting the new war against Iran with its ally the United States since February 28, Israel is also battling Iran-backed Islamist movement Hezbollah in southern Lebanon.

Ahead of the vote, lawmakers debated the budget proposals late on Sunday.

Far-right Finance Minister Bezalel Smotrich called it a “historic turning point” for Israel. “We have the capacity to reshape the Middle East.

This budget positions the nation to win,” Smotrich said. “We are passing this budget under a right-wing government committed to fulfilling its term and achieving its missions in security, the economy and judicial reform. “This term will be remembered as a historic turning point for the State of Israel, redefining both our security approach and our economy,” Smotrich added.

He also praised Israel’s macroeconomic performance as “astonishing” despite the war.

Main opposition leader Yair Lapid described it as “the greatest theft in the state’s history”. “Six billion shekels are coalition funds that this government is allocating to itself, to corruption and draft evasion,” Lapid said. “The Israeli public is not foolish.

It understands that this budget is a windfall for the corrupt and for those who evade responsibility, celebrating at our expense,” he added.

Earlier this week, Lapid had lashed out at the government ove

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