Budget

Nearly four weeks into a war that has so far failed to achieve the toppling of Iran's clerical rulers, Prime Minister Benjamin Netanyahu is reportedly looking to stave off early elections.

Knesset officials say haredi funds were distributed before approval, raising legal concerns ahead of a High Court hearing on the dispute.

The decision followed debates in the committee that went late into the night. The second and third readings are expected to take place in the Knesset plenum on Thursday.

If the state budget is not approved in all three readings by next week, when the fiscal year closes at the end of the month, the Knesset will automatically dissolve, and elections will be called.

The updated budget, which passed in the plenum by a margin of 53–45, must still pass its final votes before the end of March.

As Israel continues to face war, the government's focus on divisive legislation is distracting from critical wartime priorities and risking further division within the country.

The funds were to be used for classified equipment, which the government cited as an “urgent and immediate need” to provide an operational response to the ongoing war.

The cabinet decided to increase the defense budget for this year by NIS 32 billion and allocate an additional reserve of about NIS 13 billion for defense and civilian needs

Coalition funds are part of the national budget and are determined during coalition negotiations after elections when forming a government.

“The costly campaign requires a special budget with the addition of tens of billions of shekels for the war effort,” Netanyahu said.