Israel’s Defence Ministry has significantly overspent its budget due to ongoing military operations in Gaza, sparking a sharp dispute with the Finance Ministry, according to reports by the country’s public broadcaster KAN.
During a closed-door security cabinet meeting on Sunday, the Defence Ministry revealed that its spending for the current fiscal year had already exceeded budgeted allocations by $4.17 billion. Officials cited the expanding military campaign in the besieged Gaza Strip as the primary reason for the overrun.
However, the Finance Ministry warns the deficit could balloon to $7 billion by year-end if the conflict continues at its current scale, KAN reported.
Cabinet Tensions Boil Over
A heated confrontation reportedly erupted between Finance Minister Bezalel Smotrich and the Defence Ministry’s director general during the meeting. Accusations flew on both sides regarding overspending and lack of fiscal oversight.
Smotrich reportedly criticized the Defence Ministry for acting unilaterally:
“You’re doing whatever you please,” he said, accusing the ministry of overstepping its authority and bypassing agreed-upon financial protocols.
The Defence Ministry official responded by highlighting the political context and urging unity:
“I expect your support — you’re in the Cabinet,” the official said, noting that Smotrich himself had been involved in the decision-making that led to the current military spending.
Israel’s Largest Ministry Budget
According to Israeli business outlet The Marker, the Defence Ministry’s 2025 budget stands at $37.8 billion, making it the most heavily funded ministry in the Israeli government.
Mounting Criticism Over Gaza War
The financial dispute unfolds as public criticism of Prime Minister Benjamin Netanyahu intensifies. Opposition leader Yair Golan accused Netanyahu of sacrificing soldiers for political survival, saying:
“While the soldiers and reservists are being sent to Gaza, Netanyahu is looting their tax money and bribing the evading ultra-Orthodox with it.”
Humanitarian Crisis in Gaza
Since the war began in October 2023, the Israeli military has waged a relentless offensive in Gaza, resulting in the deaths of over 53,900 Palestinians, the vast majority of whom are women and children.
The assault has displaced nearly the entire population and reduced much of the enclave to rubble, while Israel has blocked essential humanitarian supplies, including food, water, medicine, and electricity.
International Legal Action
In November, the International Criminal Court (ICC) issued arrest warrants for both Prime Minister Netanyahu and former Defence Minister Yoav Gallant for alleged war crimes and crimes against humanity.
Israel also faces a genocide case at the International Court of Justice (ICJ) over its actions in Gaza, further escalating international scrutiny of the war and its consequences.
