DID Press: A growing dispute between Israel’s Finance Ministry and Defense Ministry over military spending has led to the second cancellation of a high-level meeting on the defense budget, exposing deepening fiscal and political divisions within the government.
Israeli media reported that disagreements over how to finance the military have escalated, leaving key decisions on defense spending in deadlock.
Channel 12 reported that a meeting scheduled to be chaired by Prime Minister Benjamin Netanyahu to discuss the defense budget was cancelled at the last minute for the second time in a row, highlighting the severity of the internal dispute.
The Ministry of Defense has reportedly demanded an additional 40 billion shekels (around $13 billion) to its budget, warning that funding shortages are already affecting weapons contracts, equipment maintenance, and certain military operational programs.
However, the Finance Ministry, led by Bezalel Smotrich, argues that part of the requested spending reflects routine or previously existing costs and should not be classified under extraordinary wartime expenditures.
Officials at the Finance Ministry also warned that approving the military’s full request could significantly increase the budget deficit and place additional strain on Israel’s economy.
The dispute underscores mounting pressure on Israel’s fiscal system amid prolonged security commitments and rising military expenditures.