The Finance and Defense Ministries have reached significant progress in negotiations over the defense budget, Yossi Yehoshua reports. An agreement was reached to immediately transfer 15 billion shekels to the IDF, with the remaining 25 billion of the estimated 40 billion shekel gap to be transferred later in the year in installments.
The Finance and Defense Ministries have made significant progress in talks to close the 40 billion shekel defense budget gap, journalist Yossi Yehoshua reports. Sources indicate that an agreement was reached for an immediate transfer of 15 billion shekels to the IDF, with the remaining 25 billion shekels to be phased in over the remainder of the year based on budget execution pace and further understandings between the ministries.
The development comes amid ongoing negotiations that have drawn attention to the defense budget's growing demands. The Zioneer earlier reported on the National Security Council's decision to gradually increase the 2026 defense budget by 40 billion shekels, as well as the Finance Ministry's threats of a VAT hike if the defense budget were to see a 30 billion shekel boost. The current agreement appears to reflect a compromise between the two ministries, with the immediate transfer aimed at addressing urgent operational needs.
Details of the exact timeline for the remaining installments and the final budget total remain under discussion, pending further coordination between the ministries.
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