The government is set to approve a sweeping budget reprioritization—adding NIS 28 billion to defense and NIS 1.5 billion for Gaza humanitarian aid—while cutting future ministry budgets to fund the war effort.
The Israeli government will convene today (Tuesday) to review a draft resolution revising the 2025 state budget and reallocating resources for the ongoing war and long-term security needs.
According to the Finance Ministry, the adjustment represents reprioritization within the existing fiscal framework, not an expansion of the overall budget—signaling a commitment to responsible deficit control even amid wartime spending.
Key Allocations
- NIS 31 billion total redirected.
- Nearly NIS 28 billion added to the defense budget.
- NIS 1.5 billion earmarked for humanitarian aid in Gaza.
The funds will primarily cover expenses linked to Operation Rising Lion while also advancing economic and security initiatives.
Additional Priorities
The revised plan includes:
- Support for workers on unpaid leave.
- Construction of protective infrastructure.
- Renovation of shelters.
- Compensation for local authorities managing emergency expenses.
Funding the Changes
To finance the reallocation, the government intends to:
- Reduce coalition agreement allocations.
- Scale back tax benefits.
- Impose a 3.55% across-the-board cut to all government ministry budgets starting in 2026.
Strategic Context
The move underscores Israel’s dual challenge: sustaining a prolonged war effort while maintaining economic stability. With defense now consuming a larger share of the budget, ministries and social programs face tightening belts in the years ahead.
