Knesset Finance Committee Approves 15 Billion Shekels for Ministry of Defense
The Knesset Finance Committee approved 15 billion shekels in 2026 budget adjustments for the Ministry of Defense and the IDF, alongside funds for tax compensation and reservists.
The Knesset Finance Committee has approved a series of state budget amendments for 2026, including approximately 15 billion shekels allocated to the Ministry of Defense and the IDF. The session followed the approval of the Arrangements Committee amid the approach of the upcoming elections.
Budget Allocations and Reserves
During the discussions concerning the 2026 budget adjustments, about 801 million shekels were approved for the Ministry of Finance, alongside some 33 million shekels in revenue-dependent expenditure. These funds are designated for the Tax Authority, the Compensation Fund, and the Accountant General units. Out of this total, approximately 630 million shekels are earmarked for the actuarial balancing of the Compensation Fund following business compensation frameworks under Operation Roaring Lion, which is expected to generate cash flow deficits in the fund.
"The Finance Committee will continue to oversee the proper implementation of the budget to ensure that citizens, businesses, and reservists receive the full backing they require during these challenging times."
In addition, 164 million shekels were transferred from the general reserve to the National Insurance Institute to cover payments for employees placed on unpaid leave during Operation Roaring Lion. Furthermore, around 39 million shekels in revenue-dependent expenditure were approved for the Coordinator of Government Activities in the Territories as part of internal shifts within the defense budget.
Defense Funding and Public Institutions
The central allocation approved consists of roughly 11.75 billion shekels transferred from the general reserve to the Ministry of Defense. Due to the classification of the information, detailed breakdowns regarding the usage of these funds were presented to the joint session of the Finance Committee and the Foreign Affairs and Defense Committee. An additional 3 billion shekels from various defense expenditure items and transportation allocations were also redirected to the Ministry of Defense.
During the proceedings, the Finance Committee addressed issues concerning IDF reservists. At the committee's request, an IDF representative announced that complaints regarding shortened processing days for reservists would be thoroughly examined. Another critical issue raised involved financial assistance for non-profit organizations and public institutions affected economically by the ongoing conflict. Under the 2026 Economic Aid Program Law, at least 40 million shekels were designated to support public institutions whose revenues declined but remained ineligible for compensation under the Property Tax Law.
