Israel's Defense Ministry is seeking a record high $45 billion allocation in the 2026 budget, Israeli financial daily Calcalist reported on Tuesday, including a large sum to counter Iranian drones and missiles.
The ministry seeks 144 billion shekels ($44.7 billion) for 2026, of which roughly 7 billion shekels ($2.2 billion) targets Iran's missile and drone expansion, the report said.
"Our enemies' focus demands immediate emergency resupply," said Major General Amir Baram, Defense Ministry director general, while criticizing the Finance Ministry for blocking billions in arms, tank parts, drones and border walls, citing Iran's drills and rearmament.
Calcalist is Israel's leading financial newspaper under Yedioth Ahronoth Media Corp.
Israel launched a surprise military campaign against Iran in June, striking nuclear and military sites. Tehran responded with hundreds of drones and ballistic missiles.
Following Israel's strikes, the United States targeted major nuclear sites in Fordow, Natanz, and Esfahan on June 22. President Trump called the attack successful, resulting in the “obliteration” of Iran's nuclear facilities.
The 12-day war concluded with a US-brokered ceasefire on June 24, halting military attacks on both sides. Yet in the months since, officials in both have openly hinted at the prospect of another confrontation.
‘Proxy threat’
Israeli Finance officials countered they support defense but warn of economic risks from excess, blaming IDF “waste in reserves,” the report said. Baram conceded reforms but prioritized Iran's vows of revenge alongside Hezbollah threats.
Baram noted current spending at 6.7% of GDP (vs. 35% in 1973) and called for swift replenishment, including a Jordan border fence.
Prime Minister Benjamin Netanyahu said on Monday that Tehran remains a threat to Israel but was weakened by the punishing 12-day war in June.
“We crushed Iran’s axis of evil. We distanced and neutralized the dual threat from Iran—the nuclear threat and the ballistic threat alike," Netanyahu told the Knesset amid growing criticism from opposition lawmakers.
“This is a real threat, but not what it once was. We act with determination, initiative, and strategy," he added.
