Netanyahu, Katz, and Smotrich Agree to Reopen State Budget for Defense

Prime Minister Benjamin Netanyahu, Defense Minister Israel Katz, and Finance Minister Bezalel Smotrich have agreed to reopen the state budget framework immediately following the elections to approve billions in additional funding for the defense establishment.

The decision was reached following a high-level meeting led by Cabinet Secretary Yossi Fox, Budget Director Mehran Frozanfar, Deputy Attorney General Nir Weingold, and other senior officials. The planned budget adjustments are designed to cover defense shortfalls until the middle of next year.

The agreement outlines measures to minimize operational gaps, secure essential supplies, guarantee production lines, and finalize necessary procurement contracts for security reasons, even if delivery is scheduled for a later date.

While the exact budget figures are still being finalized, the move addresses critical financial needs. Netanyahu had previously attempted to expand the defense budget ahead of the elections, but faced opposition from lawmakers, as election periods typically require broad parliamentary consensus for legislative amendments.

Government estimates suggest the supplementary funding could avert recent spending cuts while keeping the 4.9 percent deficit target intact, supported by stronger-than-expected tax revenues. The current defense budget stands at 143 billion shekels, supplemented by 15 billion shekels in wartime reserves, alongside previous horizontal cuts.