As Israel engages in military escalation against Iran, the implications for domestic policy are becoming increasingly complex. According to Israeli newspaper 'Kalcalist', the ongoing military operation, dubbed 'Lion's Roar', could necessitate legislative changes to delay the budget approval deadline, which is critical due to the approaching deadline for the 2026 budget. The current situation may lead the Knesset to modify the 'Basic Law: The Knesset' or enact a temporary measure to extend the budget approval timeline, thereby avoiding elections amid ongoing military operations.

The Israeli government has been operating without an officially approved budget since January 2026, relying on a monthly expenditure system based on the previous year’s budget. As reported by 'Kalcalist', the Knesset must pass the budget in two readings by the end of March 2026, failing which the parliament will be automatically dissolved. With just 18 days left until the coalition's self-imposed deadline of March 26, 2026, the urgency and stakes of the situation are heightened, underscoring the delicate balance between military actions abroad and political stability at home.

The potential consequences of a failure to pass the budget could be far-reaching for Israel's political landscape. If early elections are necessitated, it could reshape the current political dynamics, affecting coalitions and power structures within the country. This situation embodies the intricate interplay between security concerns and legislative responsibilities, highlighting a pivotal moment in Israeli governance amidst escalating tensions in the region.