Israel's Defence Budget Boost: Navigating Polarization and Security

Israel's cabinet has approved the 2026 state budget, allocating $35 billion for defence, up from a prior draft. The budget faces parliamentary challenges amid a polarized government. Key issues include potential elections, coalition splintering, and military spending following costly conflicts in Gaza and Lebanon.

The Israeli cabinet, on Friday, endorsed the 2026 state budget featuring a significant increase in defence allocation, inflating to $35 billion from a former draft budget of $90 billion shekels. The defense financial bump underscores efforts to bolster military capabilities amid persistent security concerns.

The budget now awaits parliamentary review, where it is poised for a rigorous legislative journey. As polarization intensifies within Israel's government, there is significant pressure to reach a consensus before the March deadline to avert possible elections. Contentious issues, such as the recent splintering within the ruling coalition over military decisions and ultra-Orthodox demands, loom large over discussions.

Amid this backdrop, Finance Minister Bezalel Smotrich highlighted the substantial fiscal commitment aimed at fortifying the Israeli military, even as the government grapples with internal tensions and the nation's broader economic pathway. Yet, this fiscal strategy also aims at propelling national growth and providing citizen relief.

(With inputs from agencies.)