After the government approved an urgent NIS 1 billion defense procurement deal for Apache helicopters for the IDF today, with the majority of the funds to be reallocated from the five-year plan for Arab society, Minister of Finance Bezalel Smotrich said, "There is a deal to purchase 12 Apache helicopters that is due to be signed today. I believe this deal is a mistake, and I stated this at the Ministerial Committee on Procurement." Smotrich was speaking at an Israel Investment Houses Association conference.
Smotrich went on to say, "The functionality provided by Apache helicopters can be achieved by cheaper means. AI-powered drones can be developed, purchased, maintained, and operated for this purpose. The prime minister made the decision. The purchase was approved in August based on a specific payment schedule. It turned out that payment was required sooner, and the law does not allow me to authorize the Accountant General to sign a financial commitment."
"Therefore, we identified a temporary budgetary source," Smotrich explained. "We never committed to the five-year plan for Arab society; it is a plan that has not yet been approved and is currently in the 'numerator' (budgetary tracking system, A.Z.). When the 2027 budget discussions come around, we will sort out the funding sources. The defense establishment is running a massive deficit. What we did now is a technical step.
"I have a disagreement with the establishment about efficiency," Smotrich added. "This money comes from all of us-from healthcare, welfare, and infrastructure-and it creates a deficit that we will all have to pay for. The main debate is about the ‘how’, not the ‘what’. I want a larger military buildup package than the one Netanyahu agreed. I appointed Maharan Frozenfar as budget commissioner, and we devised a plan to fund this buildup from money managed on the capital market. Three players benefit here: a strong military, the economy gains, and our asset base grows."
Published by Globes, Israel business news - en.globes.co.il - on October 14, 2026.
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