Israeli Finance and Defense Ministries announced that the government will increase defense spending by 42 billion shekels ($12.5 billion) in 2025 and 2026, according to Reuters.
Both ministers added that the budget agreement will allow the Defense Ministry to “advance urgent and essential procurement deals critical to national security.”
Crucially, Finance Minister Bezalel Smotrich stated that the new budget “fully covers the intense fighting in Gaza, alongside comprehensive security preparations for all threats — from the south, the north, and more distant arenas.”
Since the beginning of Gaza War, Israeli military costs have witnessed unprecedented growth.
Along with the deadly war in Gaza, Israel has also been in war with Hezbollah in Lebanon and with Iran over Tehran’s nuclear program.
Moreover, Israel launched several airstrikes in Syria this week after pledging to destroy government forces that attack Druze minority in southern Syria.
Apart from this, Israel’s missile defense systems have been intercepting almost daily missiles fired by Hezbollah, Iran and Houthis in Yemen.
Currently, the Israeli government’s defense spending is 110 billion shekels – approximately 9% of gross domestic product – out of a total 2025 budget of 756 billion shekels.
Director General of the Defense Ministry, Amir Baram, said that the extra budgetary funding “will allow the Defense Ministry to immediately sign procurement deals for the weapons and ammunition required to replenish depleted stocks and support the IDF’s ongoing operations.”
Baram also added that the funding will also enable the defense establishment to set development programs to elevate the Israel Defense Forces’ qualitative edge for future systems.
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