Legislation9/14/2026

Netanyahu Asked Opposition to Support Amendment to Budget Law

Prime Minister Benjamin Netanyahu proposed reopening the Budget Law to increase defense spending. Opposition leader Yair Lapid agreed to support additional funding for the IDF but demanded that taxes not be raised and that coalition allocations be cut.

Key facts

•Initiative: amendment to the Budget Law
•Defense shortfall: approximately 40 billion shekels
•Previously ordered transfer: 15 billion shekels
•Remaining shortfall: 25 billion shekels
•Coalition funds in previous transfers: around 408 million shekels
•The source does not state the Knesset's final decision

Why the Opposition's Consent Was Needed

Netanyahu approached Lapid during a security meeting attended by National Security Council head Shmuel Ben-Ezra. According to a source, because of the election period, broad agreement is required to bring the matter before the Knesset. The government therefore needs the opposition's support to reopen the Budget Law and pass a formal legislative measure.

Lapid's Condition

Lapid said he supports strengthening the IDF but opposes financing the additional spending by raising taxes on the middle class and reservists. He demanded that coalition allocations be canceled and that funds which, he claimed, are directed to the ultra-Orthodox sector be cut. If these conditions are met, the opposition is prepared to support the initiative in the Knesset.

Dispute Over the Source of the Money

Likud rejected Lapid's assertions and said that state revenues exceeded forecasts and the deficit was lower than expected. According to the party and Defense Minister Israel Katz, the additional defense budget can be allocated without raising taxes or cutting other budget items because the funds are already in the state treasury. In response, Lapid's office again insisted that the funding come from coalition funds rather than by increasing the burden on working citizens and reservists.

Size of the Budget Shortfall

According to Walla, after three years of intensive combat operations, the defense establishment's funding shortfall is estimated at approximately 40 billion shekels, including because of payments for reserve-duty days. Netanyahu previously ordered the immediate transfer of 15 billion shekels, while the Finance Ministry proposed addressing the remaining 25 billion shekels around October–November. Separately, previously approved transfers totaling approximately 2 billion shekels were reported, of which around 408 million shekels, according to the Finance Ministry, consisted of coalition funds; a petition against these transfers was filed with the High Court of Justice.

What this means for you

The additional defense funds have not yet been approved through the procedure described: amending the budget requires a legislative decision by the Knesset. For Israeli residents, the dispute is important primarily because of the choice of funding source—possible tax burdens, the use of additional state revenues, or cuts to other budget allocations.

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