ISTANBUL

Israel’s Knesset passed the first reading of the 2026 state budget Wednesday after a crisis with ultra-Orthodox (Haredi) coalition partners was resolved.

The first reading was approved by 62 votes in favor and 55 against following a two-day delay in the Knesset, according to The Times of Israel.

The delay stemmed from disagreements over a bill that would exempt yeshiva (Torah school) students from military service, despite demands by Haredi parties for a complete legal framework for exemptions.

Under the approved draft, Israel’s 2026 budget totals about 811.74 billion shekels ($262 billion).

Some 580.75 billion shekels (around $187 billion) is allocated to the current budget, while 230.99 billion shekels (about $74.5 billion) is earmarked for development and capital expenditure.

The bill was supported by the Haredi Shas Party and the Degel HaTorah faction within the United Torah Judaism party, while Agudat Israel, the other Haredi faction within United Torah Judaism, opposed it.

Two more votes are required, and the government must obtain three parliamentary approvals for the budget by March 31. At least 60 days must elapse between the first and final votes.

If the budget fails to pass the Knesset in the March votes, early elections will be held within three months.

Israeli Prime Minister Benjamin Netanyahu was reported to have held an emergency meeting on Jan. 26 in an effort to prevent a possible boycott by ultra-Orthodox parties during the annual budget vote.