Middle East Monitor / August 27, 2026
The Israeli army is facing a budget shortfall that is undermining its military readiness, Chief of Staff Eyal Zamir said Thursday, Anadolu reports.
“Unfortunately, these days we are also facing a challenge regarding the IDF’s budget,” Zamir said during a multi-front situational assessment, according to an army statement.
“At a time when the IDF and its personnel are operating on all fronts, we must deal with a lack of funds. Such a situation harms the IDF’s readiness,” he said.
The remarks come amid a dispute between Israel’s Defense and Finance ministries over additional military funding.
Israeli media reported this month that the army faces a budget shortfall of around 40 billion shekels ($12.3 billion), largely due to continued operational expenses and reserve-duty costs.
The funding dispute has also affected military procurement programs, including planned acquisitions of fighter jets and munitions.
Israel’s 2026 defense budget was initially set at roughly 143 billion shekels, including funding for military operations, according to the Knesset.
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Israeli military officials warn funding shortfall could disrupt operations in 2027
Middle East Monitor / August 28, 2026
Senior Israeli military officials have warned that failure to secure additional defence funding could force the army to scale back reserve deployments, intelligence operations and preparations for a potential renewed confrontation with Iran, according to Israel’s Kan News.
One senior military official said insufficient funding could lead to the suspension of some reserve duty in the Northern and Southern Commands.
“We will be forced to reduce intelligence-gathering operations, and we will not be able to adequately prepare for a possible renewed conflict with Iran,” the official was quoted as saying.
Another senior official warned that the government formed following Israel’s elections would have approximately four months to restructure the defence budget and secure the required funding, saying delays could make 2027 a “lost year” for the military.
According to the report, the Israeli military is seeking an additional 25 billion shekels for the current year, after receiving a commitment from the National Security Council for additional defence funding. Twelve billion shekels have already been allocated, while the military is awaiting a further three billion shekels, the report said.
Separately, the military is expected to receive 350 billion shekels between 2027 and 2040 for long-term procurement and modernization. Around 70 billion shekels has already been committed to purchases including F-35 and F-15 fighter aircraft, helicopters and space-related projects.
Prime Minister Benjamin Netanyahu has approved an allocation of 100 billion shekels, according to the report, while the military is seeking an additional 180 billion shekels for a multi-year modernisation program.
“If we reach July 2027, it will be a lost year,” a senior military official told Kan, warning that without an adequate budget the army’s operational capabilities would be severely affected.
The warnings reflect an ongoing dispute over the scale and timing of defence spending as Israel’s military seeks to fund current operations while simultaneously financing long-term procurement and modernization programs.
