Israeli Cabinet Backs Budget Heavy on Defense Spending, Tax Cuts

The Israeli cabinet approved a 2026 budget aimed at maintaining high defense spending resulting from two years of conflict, while seeking to boost the strained economy via concessions to middle-class workers.

Those priorities will be funded by new levies on banks and land owners as well as a 10 billion shekel ($3 billion) windfall from the sale of Israeli founded Wiz to US tech giant Google, according to the proposed budget voted through on Friday.

The conflicts against Hamas, Iran and Lebanon-based Hezbollah have cost Israel an estimated 350 billion shekels, and a major aim of next year’s budget is ...