GazaHerald – The Israeli parliament (Knesset) approved in its first reading on Wednesday a bill to allocate an additional 30.8 billion shekels ($9.23 billion) to cover spiraling war expenses, primarily for security needs.
The vote took place during a special summer recess session, with 42 members supporting the bill and 37 opposing it. Under Israeli law, two more readings are required before the measure becomes law. The approval comes as Israel’s military costs surge, particularly following the June conflict with Iran and ongoing large-scale operations in Gaza.
According to the economic outlet Calcalist, the bill emerged from a political deal between Prime Minister Benjamin Netanyahu’s government and ultra-Orthodox parties, which had withdrawn from the coalition in July. As part of the arrangement, the United Torah Judaism party abstained while the Shas party voted in favor, securing passage. In exchange, the Knesset Finance Committee will transfer 80 million shekels ($24 million) to the Ministry of Religious Affairs on Thursday.
The defense budget hike accompanies another bill raising the deficit ceiling from 4.9% to 5.2%, also passed in its first reading by 48 votes to 40. Israel’s 2025 state budget, approved in March, stood at 619 billion shekels ($185.55 billion) with a security allocation of 110 billion shekels ($33 billion).
Disputes have since flared between the Finance and Defense ministries, as the military has demanded an additional 60 billion shekels ($18 billion) to replenish depleted stockpiles and finance urgent purchases, ranging from Arrow missiles to hundreds of armored vehicles for troops in Gaza.
Meanwhile, internal military documents leaked by Channel 12 in early September revealed that Operation Iron Swords (May 16–August 6, 2023) failed to achieve its stated objectives, including defeating Hamas and securing the release of hostages.
Despite this, on September 3 the Israeli army launched Iron Swords 2, aimed at occupying Gaza City. The campaign has already drawn domestic criticism, fueled by fears over hostage safety and heavy casualties among soldiers.
The Israeli Public Broadcasting Corporation has estimated the cost of Iron Swords 2 alone at between $6 billion and $7.5 billion.
