Israel will increase defence spending by 42 billion shekels, or 12.5 billion dollars, across 2025 and 2026, according to a joint statement from the Finance and Defence Ministries.
The additional funding will allow urgent procurement deals and strengthen the country’s military readiness amid growing security threats.
The move follows record war-related spending in 2024, which reached 112 billion shekels and pushed the national deficit close to 5 percent of GDP.
Officials say the expanded budget will also support local defence manufacturing and help Israel maintain its technological edge in partnership with NATO and the United States.
