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Israel’s parliament is set to vote overnight on a 2026 national budget defined by a massive surge in military spending as the country manages a multi-front conflict.
The defence allocation is expected to exceed $45 billion—more than double its 2023 pre-war levels—to fund ongoing operations against Iran and Hezbollah.
Under Israeli law, the coalition must pass the budget by March 31 to avoid a government collapse and the triggering of automatic snap elections, adding intense political pressure to the legislative process.
The $245 billion spending plan has become a flashpoint for internal division.
Finance Minister Bezalel Smotrich hailed the budget as a “historic turning point” that will enable Israel to reshape regional security and sustain its economic performance despite the high costs of war.
However, opposition leader Yair Lapid condemned the proposal as “the greatest theft in the state’s history,” criticising the allocation of billions in coalition funds to ultra-Orthodox institutions and West Bank settlements.
At the same time, other civilian ministries face a 3% across-the-board cut. Tensions are further fuelled by the government’s handling of military conscription exemptions for the ultra-Orthodox, a move that remains deeply unpopular with a majority of the Israeli public.
While Prime Minister Netanyahu relies on ultra-Orthodox allies to maintain his coalition, the budget includes significant increases for their private schools alongside frozen funding for core-curriculum education.
As lawmakers debate late into the night, the final vote will determine whether the current government survives or if the nation heads to the polls amidst a deepening regional war.
