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State Budget

Israel’s defense budget set to hit record $62.8 billion as tensions persist on all fronts

Military and Defense Ministry are seeking another 40 billion shekels ($13.3 billion) to fund operations in Gaza, Lebanon and Syria, high readiness for renewed war with Iran and expanded troop deployments in the West Bank

Yuval Azoulay, Calcalist | 05.18.26

Israel eyes nixing Eilat VAT exemption, retirement age hike to 70 in sweeping treasury plan

The 2027-2032 plan also weighs pension changes, cuts to tax breaks, a mileage tax, ministry closures and major investment in health, education and infrastructure

Gad Lior | 05.13.26

Israel’s budget deficit narrows to 4.2% of GDP despite war costs

Data show rolling 12-month deficit fell to 89.5B shekels in March, helped by continuing budget and delayed war outlays; officials say much larger deficits expected once defense spending, ministry funding and business compensation begin flowing

Gad Lior | 04.15.26

Israel approves new R&D tax incentives in bid to keep high-tech investment

Parliament backs 2026 R&D tax credits, with bigger incentives for firms in periphery and major tech companies, as Israel moves to protect its high-tech edge amid OECD-led tax changes and intensifying global competition for investment

ynet Global | 04.11.26

Bank of Israel stands pat at 4% as Iran war fuels fears of fresh inflation flare-up

Central bank keeps benchmark rate unchanged as war injects uncertainty into Israel’s growth outlook, while wider market turmoil pushes up oil prices and intensifies stagflation fears globally

Gad Lior | 03.30.26

More money for defense, less for education and health: inside Israel’s $221.6 billion budget

Defense spending jumps to NIS 144 billion while education, health and welfare absorb cuts; coalition pushes through NIS 790 million in disputed funds after surprise vote

Gad Lior | 03.30.26

Israel passes record 2026 budget as coalition pushes through last-minute funds for Haredi schools

Ultra-Orthodox parties back wartime budget after coalition frees frozen funds for yeshivas in surprise Knesset move that catches opposition off guard

Amir Ettinger, Moran Azulay | 03.30.26

רה"מ בנימין נתניהו ושלמה קרעי במליאה - דיון 40 חתימות

Government races to pass state budget as war continues, faces elections if it fails

Coalition plans final vote Thursday, just days before legal deadline; opposition filed more than 5,000 objections to filibuster proceedings, while ultra-Orthodox parties are expected to back budget despite tensions over military draft bill

Yuval Karni | 03.22.26

Israel says war with Iran and Hezbollah will last 'only a few weeks'

Finance Ministry lowered its economic growth forecast for 2026, with the economy now projected to grow 4.7% in 2026, down from a previous forecast of 5.2%

Gad Lior | 03.10.26

ראש הממשלה בנימין נתניהו ושר האוצר בצלאל סמוטריץ' בהצהרה לתקשורת

Netanyahu says contentious Haredi draft bill set aside to pass wartime budget

Alongside Smotrich, PM says government pushes to pass the state budget by the end of the month, failure to do so leading to the dissolution of Knesset and new elections

Itamar Eichner, Moran Azulay, Gad Lior | 03.10.26

Haredi boycott of key draft exemption bill vote throws state budget into jeopardy

Ultra-Orthodox lawmakers claimed there was no progress in the discussions on draft bill so they decided not to support vote on the Arrangements Law; צove threatens timetable set by coalition and the advancement of its reforms, including milk reform

Shilo Freid | 02.05.26

Dairy farmers threaten to halt milk supply over controversial reform: 'They are destroying our industry'

Dairy reform promoted by the Minister of Finance and contained in the budget's Arrangements Law is supposed to end dependence on local producers and open the market to imports from abroad; Dairy farmers claim it will cause small dairies to close; 'This reform is pushing us to the edge'

Alexandra Lukash | 02.02.26

Despite record size, first post-war budget lacks growth engines, slashes welfare

Fate of the 2026 budget hinges on ultra-Orthodox party support, as lawmakers push through a costly plan with new taxes on land, banks and e-cigarettes, frozen income tax brackets and no clear growth engines after two years of war

Gad Lior | 01.26.26

Failure to pass 2026 budget this week will likely trigger early elections, finance ministry warns

Will national elections be brought forward to July? If the state budget is not approved in first reading in Knesset this week, it will not pass the second and third readings by the March 31 deadline; the Haredi parties will not vote to pass the budget unless a draft law also is passed

Gad Lior | 01.19.26

אימון של יחידת יהל"ם. האימון הבא כבר לא יתקיים

IDF cancels training for dozens of combat units amid budget uncertainty

Cancellations affect exercises planned for 2026 across multiple commands, as the military fears budget cuts or early elections could delay approval, threatening readiness after two years of continuous war

Yoav Zitun | 01.11.26

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