There are reports indicating that the Israeli military is grappling with a serious financial crisis following the recent ceasefire that ended a 12-day conflict with Iran.
The report say the disagreements between the Israeli Defense Ministry and the Finance Ministry have stalled critical military funding needed to replenish equipment and maintain operational readiness.
YNET, an Israeli media outlet said
the Defense Ministry is requesting an additional 60 billion shekels (around $17.5 billion) to cover war expenses incurred during operations against Iran and Gaza but the Finance Ministry has declined to release the funds, arguing that they were not included in the 2025 national budget.
This funding dispute has already delayed the procurement of vital defense systems, including Arrow missile interceptors and armored vehicles needed for military
operations, particularly in Gaza.
Defense officials accuse the Finance Ministry of withholding money that had previously been approved by a joint governmental committee.
Sources close to the issue suggest that the Finance Ministry’s hesitation is partly driven by the mounting costs of maintaining reserve forces, estimated at about 1.2 billion shekels per month.
Further complicating matters, Finance Minister Bezalel Smotrich was reportedly aware of the military’s plans for the Iran operation and its potential financial consequences prior to the conflict.
Meanwhile, the Israeli military is struggling to replace outdated Hummer jeeps used in Gaza, many of which were destroyed by anti-tank missiles. Although an order for 632 new armored jeeps has been placed, the funds to pay for them remain frozen.
Additionally, the Air Force faces shortages of essential munitions and interceptor missiles, raising concerns about Israel’s ability to defend against future threats.
The budget impasse raises serious questions about Israel’s military preparedness amid growing security challenges in the region
