Full Breakdown
Knesset Approves Controversial 2026 State Budget Amid Protests
3/30/2026, 11:09:57 PM
Passage of the 2026 State Budget
On March 30, 2026, Israel's Knesset approved the 2026 state budget, amounting to a record NIS 850.6 billion ($271 billion), by a vote of 62 to 55. This budget, heavily focused on defense spending, was passed during a late-night session held in a fortified chamber due to ongoing military conflicts with Iran and Hezbollah. The approval averted the risk of early elections, which would have been triggered had the budget failed to pass by the legally mandated deadline of March 31.
Defense Spending and Budget Allocations
The budget allocates approximately NIS 143 billion ($45.8 billion) to the Defense Ministry, reflecting a significant increase due to wartime demands. In contrast, civilian sectors, including education and healthcare, face cuts of over 3%. The Education Ministry is set to receive nearly NIS 97 billion ($30.9 billion), while the Health Ministry will receive around NIS 63 billion ($20 billion). Critics argue that these cuts disproportionately affect essential services amid ongoing military operations.
Protests and Public Dissent
Following the budget's passage, protests erupted outside the Knesset, organized by the "Changing Direction" group. Demonstrators criticized the government for prioritizing defense spending over public welfare, accusing it of "looting" public funds while citizens remained in bomb shelters. Protesters labeled the government as "corrupt" and demanded immediate elections to replace it. Israeli police arrested five individuals during the protests for violating public order.
Political Maneuvering and Controversial Allocations
The budget's passage involved a controversial last-minute maneuver that allowed the coalition to allocate approximately NIS 800 million ($255 million) to ultra-Orthodox educational institutions. This funding was initially frozen due to legal disputes over military conscription exemptions for yeshiva students. Opposition lawmakers, caught off guard, mistakenly voted in favor of these allocations, which critics described as unprecedented and a "theft" of public funds.
Official Statements and Responses
Finance Minister Bezalel Smotrich defended the budget, asserting it addresses both security needs and the cost of living, while also promising tax relief for working families. In contrast, opposition leader Yair Lapid condemned the budget as a "robbery" that benefits the corrupt and draft dodgers, vowing to fight against it in future legislative sessions. Former Prime Minister Naftali Bennett labeled the budget the "most reckless and anti-Zionist" in Israel's history.
Criticism and Opposition
The budget has faced significant backlash from various political figures and groups. Critics argue that the allocations to ultra-Orthodox institutions and West Bank settlements undermine national interests and exacerbate social inequalities. The opposition has vowed to challenge the legality of the budget's provisions, particularly those circumventing the Attorney General's directives regarding military conscription.
What's Next
As the Knesset prepares for upcoming elections scheduled for late October, the implications of this budget and the ongoing protests may shape the political landscape in Israel. The coalition's reliance on ultra-Orthodox parties and the contentious nature of the budget could lead to further political instability and public dissent in the coming months.
