Ankara: Israel's Defense Ministry announced an agreement with the Finance Ministry to increase its defense budget by 42 billion shekels (approximately $12.5 billion) for the years 2025-2026. This decision comes in response to the escalating costs associated with ongoing military operations.
According to Anadolu Agency, the agreement was reached by Defense Minister Israel Katz and Finance Minister Bezalel Smotrich, with the involvement of the National Security Council and the prime minister's office. The additional funds are intended to enable the Israeli military to proceed with urgent weapons procurement and replenish stockpiles in light of the ongoing conflict in Gaza and rising tensions with Iran and Yemen's Houthi group.
Defense Minister Katz expressed approval of the budget increase, emphasizing its importance for equipping the defense establishment to strengthen its capabilities and prepare for various scenarios. Defense Ministry Director-General Maj. Gen. Amir Baram highlighted that the agreement would facilitate immediate contracts for acquiring essential military equipment and initiate new development programs to maintain Israel's qualitative edge in future weapons systems.
The announcement aligns with the ministry's directive to accelerate the production of the Arrow missile defense system, designed to counter ballistic missile threats. International media, including the UK's Telegraph, have noted multiple failures in Israel's defense systems during recent hostilities involving Iran and Yemen's Houthi group.
Israel's defense spending has significantly increased since the commencement of its offensive in Gaza in October 2023. The Knesset approved the state budget for 2025 in March, allocating the largest portion of 109.8 billion shekels (around $32.7 billion) to the Defense Ministry.
Despite international calls for a ceasefire, Israel has continued its offensive on Gaza since late October 2023, resulting in nearly 58,600 Palestinian casualties, predominantly women and children. The sustained bombardment has devastated the enclave, causing food shortages and disease outbreaks.
In November, the International Criminal Court issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant on charges of war crimes and crimes against humanity in Gaza. Additionally, Israel faces a genocide case at the International Court of Justice related to its actions in the enclave.