Israel's largest-ever budget approved, averting early elections
5 billion shekels (about $1.3 billion) in coalition funds were approved at the final stage of negotiations, much of it directed toward priorities supported by ultra-Orthodox parties
The Knesset has approved Israel’s 2026 state budget in its final reading, a move that prevents the government’s immediate collapse and avoids early elections, locking in the political calendar for a vote expected in October.
The vote concluded a tense, hours-long parliamentary session marked by opposition filibusters and repeated interruptions after sirens warned of Iranian ballistic missile fire, forcing lawmakers to evacuate the plenum multiple times.
The budget, totaling 850.6 billion ($271 billion), is the largest in Israel’s history.
A major share of the budget, 143 billion shekels (about $38 billion), is allocated to defense due to the ongoing war with Iran and regional proxies.
An additional 5 billion shekels (about $1.3 billion) in coalition funds were approved at the final stage of negotiations, much of it directed toward priorities supported by ultra-Orthodox parties, triggering sharp criticism from the opposition.
Opposition Leader Yair Lapid condemned the late changes, calling them unprecedented and accusing the government of political misuse of public funds. “There has been nothing like this in the history of the Knesset,” he said, describing the additions as a last-minute diversion of state resources.
Despite the controversy, the budget passage marks a key political win for the governing coalition, allowing it to complete its term and move toward elections scheduled for later this year rather than facing immediate dissolution.