Israel Adds 42 Billion Shekels to Defense Budget for 2025-26

Israel’s Finance and Defense ministries said they have agreed to raise the country’s defense budget by 42 billion shekels (about $12.5 billion) spread across the 2025 and 2026 fiscal years. The ministries said the extra funds will help replenish weapons and ammunition consumed in recent multi-front hostilities and bolster military readiness amid what they described as persistent security challenges. Director-General Maj. Gen. Amir Baram added that the allocation will support urgent procurement deals and sustain local defense manufacturing. The increase comes after Israel’s wartime spending surged to an estimated 112 billion shekels in 2024, widening the budget deficit to nearly 5 percent of GDP. Officials did not detail how the latest expansion will be financed, but the Finance Ministry said it remains committed to balancing broader fiscal goals with national security needs.