Israel approves $222-bn budget, grants $45 bn for defence amid war

The Israeli parliament approved a $222-billion 2026 state budget, with a sharply higher defence allocation, amid involvement in the US-Iran war. The budget totals 699 billion shekels ($222 billion) and sets a fiscal deficit target of 4.9% of GDP. Further, defence accounts for the largest share at 143 billion shekels (over $45 billion), 120% higher than pre-war levels in 2023.