Israel approves $333 million defense budget boost for 'urgent' arms purchases
Several senior Finance Ministry officials, reportedly not consulted ahead of the announcement, have warned that the proposed spending increase could require higher taxes and cuts to civilian budgets
The Israeli government on Sunday approved the transfer of one billion shekels ($333 million) to the defense budget to fund urgent military procurement.
The measure, which received approval from the ministerial acquisitions committee on Thursday, was described as necessary due to the state of emergency facing Israel.
Of the additional funding, 850 million shekels will be redirected from money originally allocated by the Economy and Industry Ministry for technological development and job creation.
A significant portion of those funds had been earmarked to support the construction of a new Intel facility in southern Israel. After the US chipmaker suspended the project, the government opted to redirect the available funding toward defense needs.
The remaining 150 million shekels will come from previously approved budgetary allocations that have not been implemented this year.
The full one-billion-shekel package will finance urgent purchases of weapons and ammunition for the IDF. Details of the equipment being acquired are barred from publication.
The move brings Israel’s defense budget to a record 184 billion shekels, approximately $61 billion.
The decision comes days after Prime Minister Netanyahu announced plans to further increase Israel’s military spending over the next decade, proposing that additional defense expenditure rise from 350 billion to 400 billion shekels.
Several senior Finance Ministry officials, reportedly not consulted ahead of the announcement, have warned that the proposed spending increase could require higher taxes and additional cuts to civilian budgets.