Israel raises the defense budget to $26.6 billion

The Finance Committee of the Israeli Knesset (Parliament) has approved the allocation of 11.3 billion shekels (3 billion dollars) for unspecified defense projects, as reported by the Israeli newspaper “Globes.”

According to this economic newspaper, in an exceptional move, the approval of the defense budget supplement was put to an immediate vote, with all present committee members at the session consenting due to its urgent necessity.

As a result, the defense budget has risen from 87.45 billion shekels (23.52 billion dollars) to 98.75 billion shekels (26.56 billion dollars) according to “Globes.”

The approval for the allocation came after the Finance Committee discussed the financial deficit and rising inflation in its recent session.

Representatives of the Finance Committee stated that they still believe the deficit for the next year will reach 6.6% of the Gross Domestic Product, as stipulated in the amended budget, but it is unclear whether the current defense allocation will impact this assumption, according to “Globes.”

In regards to the forecasts for 2025, Israel expects to exceed the allowed expenditure ceiling by around 55 billion shekels (14.9 billion dollars) in the coming year, according to the latest figures released by the Israeli Ministry of Finance, as reported by “Globes.”

Israel also anticipates recording a budget deficit of 5.2% of its GDP next year, before decreasing to 4.4% in 2026, and further to 3.7% in 2027, according to the Ministry of Finance’s latest budget plan for the years 2025-2027.

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