Israel’s finance and defence ministries clash over soaring war costs and budget strain

Israel’s prolonged involvement in Gaza, Lebanon, Syria and the West Bank has driven the defence budget to 184 billion shekels, the second-largest in the country’s history. Military Chief of Staff Eyal Zamir warned that the campaigns are being fought with “empty coffers,” prompting a request for an additional 15 billion shekels. Finance Ministry officials, however, caution that meeting these demands would push defence spending toward one-third of the overall state budget.

Analysts such as Yossi Mekelberg and Michael Ben-Gad note that political fragmentation and the far-right Finance Minister Bezalel Smotrich’s electoral concerns complicate any compromise. The armed forces also flag potential cuts to reserve units and intelligence capabilities if funding gaps remain, while preparing for possible escalation with Iran and regional proxies.