Israel is set to raise its defense budget by approximately 40 billion shekels (around $13 billion) to fund its military efforts against Iran, according to a report by Bloomberg citing an anonymous finance ministry official. This budget increase is part of a revised budget proposal for 2026 that will be discussed and voted on by the cabinet, led by Prime Minister Benjamin Netanyahu, before being presented to the Knesset for final approval by the end of the month.

Under the plan, the defense budget is expected to rise by about 28 billion shekels (roughly $9 billion), alongside an allocation of 10 billion shekels (approximately $3.2 billion) set aside to cover potential military needs. If approved, total defense spending will reach around 140 billion shekels (approximately $45 billion), marking a dramatic 115% increase compared to the level in 2023, prior to the outbreak of the war in Gaza. Government spending overall is projected to approach 700 billion shekels (around $225 billion).

The primary aim of this significant increase in defense funding is to replenish military stockpiles and pay the salaries of soldiers. This decision reflects the ongoing conflict in the region and Israel's commitment to enhancing its military capabilities in the face of perceived threats, particularly from Iran. The proposed budget highlights the Israeli government's focus on national security and its prioritization of military expenditures amidst rising tensions in the geopolitical landscape of the Middle East.