Netanyahu's Defense Budget Push Sparks Knesset Political Clash
Prime Minister Netanyahu's push to boost the 2026 defense budget by 40 billion shekels faces political hurdles as the opposition demands cuts to coalition funds amid upcoming elections.
Prime Minister Benjamin Netanyahu's proposal to increase the 2026 defense budget by approximately 40 billion shekels through special legislation is expected to include civilian budget increases, such as funds for political purposes, settlements, and unnecessary ministries, according to assessments in the Knesset. Netanyahu is courting voters from the religious Zionist and "srugim" public in an attempt to prevent votes from leaking to the "Am Yisrael" party led by Ofer Winter, the "Be-Yachad" list led by Naftali Bennett, and the "Yashar!" party led by Gadi Eisenkot.
This hypothesis is based on the fact that the government can submit a budget increase bill to the Knesset even during the current election recess. Therefore, the Prime Minister does not need the support of opposition leader MK Yair Lapid (Yesh Atid), whom he asked to support the defense budget increase. Furthermore, Lapid announced that he supports increasing the defense budget, but demands cuts to coalition funds and government support budgets for draft evaders. Netanyahu commands a 68-MK majority in the Knesset from the coalition and the Haredi parties United Torah Judaism, Shas, and Noam led by Avi Maoz, meaning he does not need opposition support at all.
Under such circumstances, Knesset sources estimate that the government-submitted bill may include increases to civilian budgets, such as for settlements, which involves a special procedure during election periods. According to the Knesset Legal Advisor, Sagit Afik, the government can legally legislate a defense budget increase during an election period. However, the continuation of the legislative process in the Finance Committee must follow election-period rules. Convening the Finance Committee for second and third readings requires the consent of the "Consent Committee," comprising both coalition and opposition members.
As long as the funds are strictly designated for defense, the opposition has no objection to convening the committee and approving them. However, once the bill includes political allocations for yeshivas, settlements, outposts, and redundant ministries, opposition consent is required for Finance Committee discussions, which the opposition refuses to grant. Consequently, the struggle over expanding the defense budget by some 40 billion shekels is not genuinely about defense needs, but rather about avoiding public austerity measures while funding political and coalition priorities.
Parliamentary Mechanisms and Committee Gridlock
To increase the defense budget, a new budget law must be enacted, the expenditure ceiling raised, and the "numerator" and deficit targets updated accordingly. This requires budget cuts, tax hikes, and an increased deficit target. Even if the legislation includes civilian budget increases unrelated to the war—and the opposition objects—the coalition can still advance the bill. Knesset Speaker MK Amir Ohana (Likud) can permit the Finance Committee to convene during the election recess despite opposition objections, citing exceptional circumstances.
He previously did so in early August, allowing the Finance Committee to convene over opposition objections to approve a series of political and coalition budget transfers, some 400 million shekels of which remain frozen by the Supreme Court. Meanwhile, while the defense establishment faces severe financial distress, the failure of Finance Committee Chairman MK Hanoch Milvitsky (Likud) to convene the committee to approve the transfer of 11.7 billion shekels from the budget reserve to the defense establishment has sparked bewilderment. The request reached the committee over a month ago, yet no discussion date has been set.
Meanwhile, Milvitsky was ousted from a realistic slot on the upcoming Knesset list, alongside five other committee members—Eli Dallal, Avichay Buaron, Akram Hasson, Abed Afif (Likud), and Moshe Gafni (United Torah Judaism)—as well as substitutes Sason Gueta and two retiring alternates, Tzatga Malko (Likud) and Zvika Fogel (Otzma Yehudit). While the coalition can bring in replacement members for votes, Milvitsky must still formally convene the committee to increase the defense budget.
The Finance Committee will be required to vote on the defense budget increase, with detailed explanations provided to the classified Defense Budget Subcommittee, jointly overseen by the Finance Committee and the Foreign Affairs and Defense Committee. Convening the defense budget subcommittee does not require opposition consent. Thus, Netanyahu appears to be attempting to "bind" the opposition into supporting a defense budget increase that quietly incorporates civilian and political fund transfers.
