The government approved an across-the-board spending cut of NIS 2.6 billion to allow unspecified defense procurement. This follows a vote last Thursday to cut NIS 1 billion from the development budget for the Arab sector (for the years 2027-2029) to finance the acquisition of 12 Apache helicopters for the IDF. defense establishment. These attack helicopters are exceptionally expensive for the capabilities they provide; nevertheless, the defense establishment insisted on their purchase.
According to the government resolution proposal presented for approval today, a 4.9% across-the-board cut will be applied to the remaining government budget for 2026. This will yield NIS 2.6 billion to be used for the additional defense procurement. The government ministries and agencies that will suffer the most severe cuts are the Ministry of Transport, regulatory authorities (such as the Electricity Authority and the Israel Securities Authority), the Ministry of National Security, and the Ministry of Education. The Ministry of Finance has warned that "budget increases for the defense establishment will come at the expense of the citizens."
The defense budget currently stands at NIS 112 billion, the largest budget item by far. This is the case even though there has been no high-intensity conflict since the "Roaring Lion" operation against Iran (conducted in coordination with the US) in February-March this year. Instead, the IDF is currently focused on force buildup and extensive procurement. This procurement is classified, despite the massive sums involved, meaning that the general public cannot assess whether these acquisitions are worth their high cost. The discussion on the importance of these purchases will take place exclusively within the Ministerial Committee for Procurement.
Published by Globes, Israel business news - en.globes.co.il - on October 18, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.