After months of hot negotiations, the Ministry of Finance and the Ministry of Defense reached an agreement to provide budget supplements for the period 2025-2026, and the sources have informed “balls”. After the agreement, the Ministry of Finance will offer the opening of the state budget for 2025 through a legislative process in Knesateet next week.
The agreement includes additions to tens of billions of Sheikhs to cover the costs of the operation in Iran, the continuation of the fighting in Gaza beyond what was planned in the original budget, the excesses of the additional budget by the Israeli Defense Army since the beginning of the year, and “strengthening additions”, for a period of 2026 in response to the recommendations of the Nagel Committee to increase the defense budget.
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The two parties approved an additional 42 billion NIS for the defense budget for the year 2025 and 2026. They also agreed that the Ministry of Defense will constitute a long -term strengthening plan since 2027.
Even a few weeks ago, the differences between the Ministry of Finance and the Ministry of Defense amounted to 45 billion New in various cases: 30 billion NIS to cover the costs of fighting so far and 15 billion NIS to strengthen and build the Israeli Defense Army, including preparing for the next possible round against Iran.
As part of the agreement, the Israel Defense Army will need to be more striking about paying reserve soldiers for leave. As part of the talks, senior Ministry of Finance officials expressed concern about the ineffective use of reserve processions: “Everyone knows dozens of stories about soldiers sitting in bases without important tasks or doing reserves from home.”
Budget additions to the Ministry of Defense will actually be established in the amended budget for 2025. Unlike the desire to plan for the future, it is also about preparing for a scenario in which the government does not pass the state budget for 2026 on time.
It was published by Globes, Israel Business News – En.globes.co.il – on July 17, 2025.
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