Israel's defense budget has climbed to an all-time high of NIS 184 billion ($61.4 billion) in recent days. Beyond the regular defense budget, the long-term force buildup budget has also undergone a significant change, rising from around NIS 350 billion ($116.7 billion) over a decade to nearly NIS 400 billion ($133 billion).
There is currently no identified funding source for this force buildup budget. The money could ultimately come from cuts to other government ministries or from taxpayers, making the plan a potentially serious threat to Israel's economic stability.
The details behind both the regular defense budget and the additional funding earmarked for the military buildup reflect the growing range of threats facing Israel, the fact that the war has continued for three consecutive years without any theater being fully closed, and, above all, the diplomatic crisis that continues to loom over the country and has brought with it restrictions and embargoes on arms supplies to Israel. Together, these developments require a different approach to defense spending.
Until last week, the defense budget stood at NIS 183 billion ($61 billion), but in recent days it increased by another NIS 1 billion ($333 million). A senior military official told Israel Hayom that the additional NIS 1 billion was needed for an immediate, classified emergency procurement opportunity that the security establishment was able to secure, requiring an immediate response and additional funding.
While the regular defense budget is already the subject of public debate, the force buildup budget is generating even greater controversy, primarily because it currently has no identified funding source. Last year, the government approved a NIS 350 billion force buildup budget spread over a decade. This week, that figure grew by another NIS 40 billion ($13.3 billion). A further increase of NIS 10 billion ($3.3 billion) is currently expected, bringing the total to NIS 400 billion, for which no funding source has yet been identified.
A closer examination presents a more complicated picture. The military divided the force buildup budget into two parts. The first consists of capabilities for which there is broad consensus. In other words, any government and any prime minister taking office after the upcoming election would inherit a military that urgently needs this funding. This portion totals NIS 260 billion ($86.7 billion) and is intended for two projects whose necessity is broadly accepted: first, establishing production lines for defensive and offensive munitions; and second, purchasing essential aerial platforms.
The military has also identified funding sources for part of this consensus-based procurement. According to the military's proposal, NIS 50 billion ($17 billion) would come from internal efficiency measures, primarily savings from reducing reserve duty days and cutting nonessential expenses. Another NIS 50 billion would come from defense exports. That would leave the military requiring NIS 150 billion ($50 billion) in additional funding.
A senior military official told Israel Hayom that the military does not need the entire amount immediately. Rather, it needs a future funding commitment covering the years 2026 to 2030. Establishing production lines requires advance payments, while orders for aerial platforms are paid for in installments over three to four years. In any event, the official said, the issue is not one of paying the full amount in cash immediately.
The second portion of the force buildup budget is effectively unallocated funding. The senior military official said NIS 100 billion ($33 billion) from this portion would be left for approval and decisions by the next government and the next prime minister, based on the threats Israel faces and the solutions developed at that time.
"It is clear to us that the threats facing Israel have changed over the past three years," the official said. "It is also clear to us that the outgoing government decided to give up US military aid, and therefore the next prime minister and the next government will have to decide which threats to prepare for and how to deal with the loss of US military assistance. That is why this money needs to be set aside, so the next government will be free to formulate solutions."
Regarding the additional NIS 40 billion approved in recent days, the senior military official said this was not additional funding for the military itself, but rather funding for measures decided on by the government with which the military has no direct connection.
"Israel is in a severe and exceptional diplomatic crisis, to the point that there is now a quiet embargo on Israel," the official said. "The Foreign Ministry has formulated a plan to deal with this crisis, and it needs NIS 12.5 billion ($4.2 billion) to implement it. Although the plan is intended in part to address the removal of arms embargoes on Israel, it must also provide solutions for the high-tech industry and Israeli businesspeople operating abroad. This is not connected to the defense budget in any way."
Another NIS 7 billion ($2.3 billion) in the additional funding discussed in recent days is earmarked for fortifying communities in northern Israel. "Here, too, there is no connection to the defense budget," the senior military official said. "Under a government decision, this budget goes to the Construction and Housing Ministry and has nothing to do with the defense budget."
As for the remainder of the requested funding, the senior military official told Israel Hayom that it was intended for preparations along emerging lines of friction, in accordance with decisions made by Israel's political leadership. Those funds are likewise not needed immediately and could wait for the next government and prime minister, the official said.
Turning to relations between the Finance Ministry and the military, the senior official said the ministry had taken an adversarial approach in discussions over the defense budget.
Ultimately, the official said, the military is carrying out missions assigned to it by Israel's political leadership. If those missions change under the next prime minister, the military's budget demands will change as well. At the same time, the official offered a comparison with the United States.
"Look at the discussion in the US surrounding munitions and put it into Israel's proportions," he said. "The United States, the world's largest and most powerful superpower, with the greatest capabilities in the world, fought continuously for 40 days. Israel has been fighting continuously for three years with capabilities far below those of the United States. From that, draw your conclusions about what Israel needs in order to carry out the missions defined by its political leadership."
