Israel's parliament votes for largest state budget ever, military spending increased by 20 percent

After a marathon session that lasted all night, Israel's parliament today voted on the state budget for 2026, ensuring that Prime Minister Benjamin Netanyahu's government can complete its term by the fall.

Israel had to pass a budget before April 1 to avoid triggering early elections. Netanyahu still has the right to call one if he needs to.

The Israeli opposition has condemned the budget for increasing funding for ultra-Orthodox communities in Israel at a time of rising costs from the war in Iran and still recovering from the two-year war in Gaza.

Opposition leader Yair Lapid called it "the biggest theft in the history of the state."

"A government of gluttony and evasion has committed a night robbery," wrote former Prime Minister Naftali Bennett, who is expected to oppose Netanyahu in the upcoming elections, on X.

Opposition parties were particularly angry about a last-minute amendment giving ultra-Orthodox schools an additional $250 million.

Anger has also grown in the ultra-Orthodox community over its leadership's refusal to allow young men to serve in the army, which is now in desperate need of every soldier due to wars with Iran and against the Hezbollah movement in Lebanon. Military service is mandatory for most Jews.

Far-right Finance Minister Bezalel Smotric praised the budget for "caring for all Israeli citizens, without exception."

Netanyahu's government is in the final months of its four-year term and is required to hold elections by the end of October. Israeli governments rarely last a full term, but the budget passage means Netanyahu, whose popularity has plummeted since the Hamas attack on October 7, 2023, is likely to be able to finish his term.

The budget was adopted with a vote of 62:55.

Sirens warning of missiles launched from Iran towards Jerusalem interrupted the discussion three times, according to a parliament spokesman. The session was held closer to the bomb shelter - in the building's auditorium, not in the plenary chamber.

The $270 billion budget, the largest ever, includes a 20% increase for the Department of Defense due to the war with Iran. That department's budget has grown to $45 billion, leading to cuts to funding for other departments.

Recent opinion polls in Israel show that, although Israelis overwhelmingly support the war, Netanyahu and his political coalition do not appear to benefit from it.

Iran fires missiles at Israel daily, disrupting the lives of millions of worried and exhausted voters. Israel's war with Hezbollah militants in Lebanon is also intensifying, while the disruption of oil flows from the Persian Gulf has upended the world economy.

Postponing the election until the fall could improve Netanyahu's chances if the war against Iran calms down by then, but the election would not be favorable for him if it were close to the anniversary of the Palestinian Hamas attack on October 7, 2023, the worst in Israel's history.

The Israeli military recently extended wartime guidelines for civilians, banning large gatherings and urging them to stay close to bomb shelters at all times, meaning the week-long Passover holiday that begins on Wednesday will be affected.