Archive · 13 Nov 2025
Israel Defence Ministry Proposes Record $45 Billion Budget Amid Treasury Dispute
Imagine Israel's army needs to buy a lot of new equipment and train more soldiers after a big fight.
The Defence Ministry wants to spend a lot of money, about $45 billion, to make the army strong again.
They also want extra money for soldiers who are not full-time and to prepare for potential problems with Iran.
However, the Finance Ministry, which manages the country's money, says this is too much and doesn't fit into the planned budget.
They have put a pause on buying new things for the army until they can check everything.
The Defence Ministry is worried this pause will make it hard to get important supplies, like parts for tanks and new drones, and keep the country safe.
They believe they need to spend this money now because their enemies are also getting stronger.
The Finance Ministry wants to make sure the money is spent wisely and within limits.
Israel's Defence Ministry proposed a record $45 billion defense budget for 2026.
An additional $9.8 billion is requested for reserve forces to address manpower shortages.
The proposal faces a major dispute with the Finance Ministry, which halted new defense contracts.
The Defence Ministry warns that delays undermine national security and readiness.
The budget aims to rebuild military strength, fund reservists, and prepare for threats from Iran.
- Who
- Israel's Defence Ministry and Finance Ministry, Israel Defense Forces (IDF), U.S. government, reservists.
- What
- Israel's Defence Ministry has proposed a record USD 45 billion budget for 2026, including funds for reserves and Iran preparedness, but faces a dispute with the Finance Ministry over spending limits.
- When
- Proposed for 2026, with delays impacting current contracts. The dispute is ongoing.
- Where
- Israel, with implications for regional security involving Iran, Gaza, and Lebanon.
- Why
- To rebuild and strengthen Israel's military following the war with Hamas, address manpower shortages, and counter threats from Iran and its proxies, while the Finance Ministry seeks to control spending within established frameworks.
Defence Ministry
Finance Ministry
Budgetary Needs
Defence Ministry
Proposing a record $45 billion budget for 2026, plus an additional $9.8 billion for reserves, to rebuild and strengthen the military, address manpower shortages, and bolster preparedness against Iran. They argue that delays in critical deals are undermining national security and leaving Israel exposed.
Finance Ministry
Refuses to approve the directive, arguing it exceeds the approved spending framework. Has placed a temporary halt on new defense contracts to conduct a professional review and set budgetary priorities, aiming to align financial activity with the budget.
Impact of Delays
Defence Ministry
Warns that delays are blocking billions in critical deals for spare parts, drones, and protection systems, significantly impacting the IDF's combat readiness and national security.
Finance Ministry
Aims to ensure financial activity is in line with the budget, implying that current spending or proposed contracts are not aligned.
- Proposed 2026 Defence Budget
- 144 billion shekels (USD 45 billion)
- Additional Request for Reserve Forces
- 37 billion shekels (USD 9.8 billion)
- US Security Funds (delayed)
- USD 3.8 billion
- Estimated Reservists to be Called Up in 2026
- 60,000 to 70,000
- Annual Shortfall in Soldiers
- Approximately 12,000
- Budget for Preparedness Against Iran
- 7 billion shekels (USD 1.9 billion)
