Economics
Israel 2025 Budget Allocates More for Military, Less for Growth
- Netanyahu’s cabinet approves contested budget after vote
- High defense spending needed for ongoing regional conflicts
Israeli army tanks drive in an area near Israel's southern border with Gaza on Oct. 6.
Photographer: Menahem Kahana/AFP/Getty ImagesThis article is for subscribers only.
The Israeli cabinet approved a 2025 budget to pave the way for rising defense spending and higher taxes, reflecting a profound shift in priorities since the start of the war with Hamas just over a year ago.
The conflicts in Gaza and against Hezbollah in Lebanon, as well as heightened tensions with Iran, have weakened Israel’s economy and finances and forced Prime Minister Benjamin Netanyahu’s government to focus on reining in the budget deficit.