Israel has confirmed a defence budget of 112 billion shekels for 2026, a sharp rise that signals continued security pressures even after the ceasefire arrangements with Hamas in Gaza and Hezbollah in Lebanon. The figure, announced on Friday, emerged as ministers entered the first round of talks on next year’s national budget, a process that must be finished by March to avoid the risk of fresh elections.
The increase places defence at the centre of the political debate, with government officials arguing that the armed forces need long term funding after an expensive year of conflict. According to the finance ministry, the new framework marks an increase of forty seven billion shekels compared with the year before the Gaza war, when spending requirements were far lower.
Defence Minister Israel Katz said the government’s agreement with the finance ministry was shaped partly by the need to support soldiers who carried much of the workload during the fighting. His office said the new funds are meant to reinforce the armed forces while easing pressure on reservists who faced long stretches of deployment.
Katz said the military would keep working to meet the needs of active fighters and reduce the load that reservists have been carrying. He added that the goal is to protect the country on every front and ensure that troops have what they need.
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The Gaza war left a heavy mark on government finances. Reuters reports that Israel spent thirty one billion dollars in 2024 on operations against Hamas and on the northern front where clashes with Hezbollah escalated before the ceasefire deals took hold.
Finance Minister Bezalel Smotrich said in a separate statement that the new spending plan aims to strengthen the military while allowing the wider economy room to recover. He said the government is setting aside a very large sum for defence but still wants to guide the country back toward growth and some relief for citizens after a difficult year.
The cabinet began its usual marathon budget session on Thursday. Sources expect an initial vote as early as Friday before the plan moves to parliament for its first reading. If lawmakers fail to pass the budget by the March deadline, the country could be pushed toward another election cycle.
Israel’s defence planning has faced intense scrutiny since the Gaza conflict erupted in late 2023 following the Hamas attacks of October that year. International observers, including the BBC and AP, have noted that the war reshaped the government’s fiscal priorities while drawing sharp political debate inside the country.
With the new spending framework in place, officials now face weeks of negotiations that will determine how the rest of the budget is divided among civilian ministries.
