Israeli government embroiled in disputes over Defense Ministry budget overrun due to Gaza war
Ministry has exceeded its spending cap by $4.17 billion due to ongoing war in enclave

JERUSAELM/ISTANBUL
The Israeli Defense Ministry overspent its allocated budget due to the war in Gaza, triggering heated disputes with the Finance Ministry, the country’s public broadcaster KAN reported Sunday.
During a closed-door security cabinet meeting held the same day, the Defense Ministry informed the government that its current-year expenditures had already exceeded planned levels by 15 billion shekels ($4.17 billion), citing the expanding of military operations in the enclave.
The Finance Ministry, however, estimates that the budget gap could widen further to 25 billion shekels ($7 billion) by the end of the year if the war continues, KAN reported.
A tense exchange reportedly broke out during a meeting between Finance Minister Bezalel Smotrich and the Defense Ministry’s director general, whose name was not disclosed. The argument centered on mutual accusations regarding financial management.
“You’re doing whatever you please,” Smotrich said, accusing the defense establishment of exceeding its authority and spending without proper oversight, despite having been allocated funds in advance.
The Defense Ministry official responded, saying: “I expect your support—you’re in the Cabinet” and pointing out that the minister himself had taken part in the war-related decisions.
According to the Israeli business outlet The Marker, the Defense Ministry’s 2025 budget stands at 136 billion shekels ($37.8 billion), making it the most heavily funded ministry in the Israeli government.
The Israeli army, rejecting international calls for a ceasefire, has pursued a brutal offensive against Gaza since October 2023, killing more than 53,900 Palestinians, most of them women and children.
Last November, the International Criminal Court issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and his former Defense Minister Yoav Gallant for war crimes and crimes against humanity in Gaza.
Israel also faces a genocide case at the International Court of Justice for its war crimes against civilians in the enclave.