Israel’s government has officially approved the 2026 state budget following a brief cabinet meeting held Friday. Prime Minister Binyamin Netanyahu opened the session by stating that the budget would pass that same day and praised the ministers and the finance minister for what he described as a focused and constructive approach.
Netanyahu told the cabinet that the budget brings meaningful benefits to the country, including tax reductions, support for active-duty and reserve IDF soldiers, and accelerated development for northern and southern communities affected during the war. He stressed that the government is stable and has no intention of heading to early elections, declaring: “This government will serve out its full term.”
The Finance Ministry and Defense Ministry reached an agreement setting the defense budget at 112 billion shekels — approximately 30 billion shekels less than what the Defense Ministry originally demanded at the start of negotiations.
Finance Minister Betzalel Smotrich welcomed the compromise, saying the government is committing massive resources to strengthen the army while still ensuring that Israel’s economy remains on a path toward growth and relief for citizens.
Ministers also approved Smotrich’s dairy reform plan during the meeting. The prime minister and most cabinet members supported the reform, with Agriculture and Food Security Minister Avi Dichter casting the sole opposing vote. The proposal will now move to the Knesset for legislation.
Netanyahu noted that the budget includes several major initiatives: tax cuts — including reductions to income tax — decreased regulation, streamlined government systems, and significant investment in communities in the north and south that suffered during the conflict. He said the budget also expands assistance, grants, and benefits for IDF soldiers in both regular service and reserves, along with increased support for their families.
Shortly after the meeting ended, the Prime Minister’s Office released a confirmation statement announcing that the government had approved the 2026 budget.
{Matzav.com}
