Israel Redirects $2.1B to Defense as War with Iran Looms
Cabinet expected to greenlight additional $1.3–2.1 billion for security needs, including Iran front and Gaza operations
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The Israeli government will convene tomorrow (Tuesday) for a special cabinet session to approve a dramatic increase in the 2025 defense budget, despite fierce opposition from the Finance Ministry. The allocation, set to add between 5 and 8 billion shekels ($1.3–2.1 billion), will raise the overall defense budget to approximately 34 billion shekels.
According to officials, the expanded budget will cover urgent expenses stemming from Israel’s ongoing confrontation with Iran and the Gaza campaign, including Operation Gideon’s Chariots. One billion shekels of the package will be designated for humanitarian aid in Gaza, while the rest will finance new weapons procurement, interceptor systems, extended reserve duty, and the establishment of new military divisions.
Opposition figures warn the move represents a breach of fiscal discipline, pushing Israel’s deficit to 5.1%. Finance Committee opposition whip Vladimir Beliak criticized the plan, accusing the Defense Ministry of bypassing budgetary oversight through multi-year procurement commitments that turn Treasury officials into “rubber stamps.”
Despite initial agreements for a smaller addition, Prime Minister Benjamin Netanyahu personally intervened, halting the compromise and demanding an even larger increase to ensure Israel’s long-term military buildup.