A government meeting scheduled for today (Tuesday) will review a draft resolution to revise the allocation of the state budget for the rest of 2025 and future years, including a proposed increase in defense spending.
The plan includes an additional NIS 31 billion to cover war-related costs, with nearly NIS 28 billion directed toward the defense budget. Of that amount, NIS 1.5 billion is earmarked for humanitarian aid to Gaza residents.
According to the Finance Ministry, this is not an expansion of the overall budget but rather a reprioritization within the existing fiscal framework. The move, they said, reflects the government’s commitment to responsible financial management and deficit control.
The revised budget will prioritize costs related to Operation Rising Lion, along with new policy initiatives aimed at boosting economic growth. These include support for workers on unpaid leave, construction of protective infrastructure, shelter renovations, and compensation for local authorities facing emergency expenses.
To fund the changes, the government plans to reduce allocations for coalition agreements and tax benefits. In addition, all government ministries will face a 3.55% budget cut starting in 2026.
