Israel increases its defense budget by 12.5 billion dollars.

The Israeli government announced a historic increase in its defense budget, which will rise by 42 billion shekels (about 12.5 billion dollars) during 2025 and 2026. The measure, driven by the Ministries of Finance and Defense, is a response to the prolonged war in Gaza and growing threats on multiple fronts.

According to the official statement, the budget expansion will allow the Ministry of Defense to immediately close urgent agreements to acquire weapons and ammunition, replenish depleted reserves, and sustain the ongoing operations of the Israeli Defense Forces (IDF). "This budget fully covers the intense fighting in Gaza, in addition to comprehensive security preparations against threats from the south, the north, and other distant scenarios," said Finance Minister Bezalel Smotrich.

Since Hamas's unprecedented terrorist attack on October 7, 2023, which left 1,200 Israelis dead and 251 kidnapped, the conflict has expanded. Iran-backed groups —such as Hezbollah in Lebanon, the Houthis in Yemen, and militias in Syria— have intensified their attacks against Israel.

In the past 21 months, Israeli missile defense systems have operated almost daily to intercept threats from all these directions, including missiles launched directly by Iran.

Israel's annual defense spending currently amounts to 110 billion shekels (32.7 billion dollars), equivalent to 9% of the national GDP, within a total budget of 756 billion shekels for 2025.

With this increase, the country consolidates its defense posture in an increasingly hostile regional environment.

"We need to ensure that the IDF has the necessary means to operate on all fronts and at all times," said Amir Baram, Director General of the Ministry of Defense.