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Israel's parliament approved the country's 2026 state budget on Monday, allocating the largest defence spending in its history amid the war with Iran, with the Israeli opposition calling it "the greatest theft in the history of the state".
Failure to approve the budget was likely to have led to a snap election within 90 days, which opinion polls so far have predicted Prime Minister Benjamin Netanyahu would lose.
The budget totals about $271 billion for the fiscal year, with the Defence Ministry receiving a record budget of $45.8 billion. Far-right Finance Minister Bezalel Smotrich described it as a "budget that takes care of everyone and fights the cost of living". He added that the defence package was the "core" of the budget and would "dramatically improve our geopolitical and diplomatic standing" to "dismantle and rebuild the Middle East".
Opposition MPs sharply criticised the budget for its allocations to ultra-Orthodox institutions, illegal settlements in the occupied West Bank and other major concerns of the coalition parties. Opposition leader Yair Lapid expressed his criticism on X by calling it the "greatest theft in the history of the state". He added that "they took the money from reservists and gave it to draft dodgers. They robbed working people and gave it to the corrupt".
Former prime minister Naftali Bennett, considered one of the main challengers to Mr Netanyahu in elections scheduled to take place this year, called the budget the "most reckless and anti-Zionist".
The coalition separated controversial points of legislation from the budget, such as the exemption of ultra-Orthodox men from mandatory military service, Israeli media reported. This appeared to have expedited the vote before its March 31 deadline, averting elections. The polls are set to take place in October, although Mr Netanyahu has said they could be held a month earlier.
The vote comes as Israel fights on several regional fronts. It resumed its conflict with Hezbollah in Lebanon this month and, together with the US, is engaged in a war on Iran. Mr Netanyahu on Sunday announced Israel was expanding its invasion in southern Lebanon. Tehran has launched strikes on Israel in response. On Monday, a fire broke out at Haifa oil refinery after an Iranian attack.
The war has spread across the Middle East, killing thousands and causing the biggest disruption to energy supplies in history, damaging the global economy. Iran has attacked Gulf states and neighbouring countries, hitting civilian infrastructure despite claiming to be launching strikes on US bases in the region.
Israel also continues its assault on Gaza and the West Bank.
