Israel’s countless regional wars deepen clash in ministries
Mounting costs from regional conflicts are intensifying bitter budget dispute as Israel prepares for further military escalation
TEL AVIV, Israel (MNTV) — Israel’s expanding military operations across the region are driving a deepening confrontation between the finance and defense ministries, with the army warning that its resources are being exhausted as the government prepares for possible further conflicts.
Since Israel initiated its genocide on Gaza in October 2023, the country has entered its longest sustained period of conflict, with Israeli forces bombarding Lebanon and Syria, maintaining military occupation of Gaza and the occupied West Bank, and preparing for possible renewed confrontation with Iran.
Israeli Chief of Staff Eyal Zamir has warned that the military is fighting a separate battle over its finances, saying the army is operating with “empty coffers.”
The government has sought to provide an additional 15 billion shekels, or about $5 billion, for the military, according to Israeli media reports. The increase would bring Israel’s 2026 defense budget to 184 billion shekels, roughly $60.8 billion.
That figure would be among the largest defense allocations in Israel’s history and second only to the 188 billion shekels allocated during the first year of Israel’s genocide in Gaza.
The additional funding has failed to settle the dispute between the two ministries.
Senior Finance Ministry officials have rejected the military’s warning that it is approaching a financial crisis and have cautioned that meeting all of its demands could push defense expenditure toward one-third of Israel’s entire state budget.
Yossi Mekelberg, a senior consulting fellow at Chatham House, told Al Jazeera that Israel’s reliance on military force across Lebanon, Syria, Gaza and Iran carries enormous financial costs, including weapons, ammunition, personnel and compensation for wounded soldiers.
The dispute has also exposed the political pressures surrounding Israel’s military policy. Finance Minister Bezalel Smotrich faces competing demands from his far-right political base for greater military expenditure while also being responsible for controlling government spending.
Israeli military briefings have blamed delays by the Finance Ministry for possible reductions in military capabilities.
Proposed measures reportedly include cuts to reserve forces in the Northern and Southern Commands and reductions in intelligence operations that depend on expensive technology.
The army has simultaneously warned that it must maintain preparations for possible escalation involving Iran, Yemen’s Houthis and armed groups in Iraq. Such preparations require continued training as well as sufficient stocks of ammunition and spare parts.
Michael Ben-Gad, an economics professor at City St George’s, University of London, said disputes between government departments over funding are common and argued that Israel’s Finance Ministry would ultimately ensure the military receives funding.
The financial pressure is being compounded by Israel’s continuing military commitments in the occupied West Bank. The army has announced preparations for a larger deployment there amid heightened tensions and warnings over settler violence against Palestinians.
Despite the growing costs, there appears to be little political appetite among Israeli leaders to significantly reduce the country’s military operations.
Israel is also spending billions of dollars to replenish ammunition used during recent fighting with Iran and other regional adversaries.
Israeli political analyst Nimrod Flaschenberg said the military routinely seeks additional funding while the Finance Ministry responds by reducing spending elsewhere.
He also said Israel is developing a military doctrine involving the establishment of forward positions in territory controlled by its adversaries.
Such a strategy could require sustained spending on troops and military equipment, creating further pressure on Israel’s already strained public finances.
The widening budget confrontation therefore reflects a broader contradiction in Israel’s current policy: while the government continues expanding and maintaining military operations across multiple fronts, the financial burden of those operations is increasingly becoming a problem of its own.
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