The defense budget for 2026 will stand at 112 billion shekels, according to agreements reached overnight at the conclusion of marathon discussions held between the Defense Ministry and the Finance Ministry.
The amount set is significantly lower than the defense establishment’s original demand, which stood at about 140 billion shekels.
Alongside the agreement on the annual budget, the Prime Minister determined that over the next decade, the defense budget will be increased by a total of 350 billion shekels. This is a broad addition that is not part of the regular budget for the coming year.
According to the agreement, the budget will be based on the operational assumption of an average of approximately 40,000 reservists in 2026. This aligns with the Defense Minister’s directive to ease the burden on reservists, in light of the current multi-front combat reality.
In addition, a separate budget package totaling approximately 725 million shekels was approved, to be allocated over three years. This package will bolster security infrastructure in Judea and Samaria, including mobility protection, road construction, the establishment of IDF bases in the area, and projects along the eastern border.
Defense Minister Israel Katz stated: “We will continue to act decisively to fortify the IDF, fully meet the needs of the fighters, and reduce the burden on reservists - in order to ensure the security of the State of Israel on every front.”
Finance Minister Bezalel Smotrich added: “I commend the defense establishment for the agreements. We are allocating an enormous budget for the army’s buildup this year, but one that also enables us to return the State of Israel to a path of growth and relief for the citizens.”
The government is expected to approve the entire state budget for 2026 in the coming hours, following a series of agreements already reached with the Ministries of Education, Housing, Welfare, Tourism, Economy, Negev and Galilee, Religious Services, Social Equality, and Regional Cooperation.
According to the agreed framework, if the defense budget exceeds the target set by the Finance Ministry, an across-the-board cut will be imposed on all government ministries - including those that have already reached budgetary agreements - in order to finance the overage.