Israel's 2026 Budget: A Rocky Road Ahead

In Israel, the finance minister, Bezalel Smotrich, is set to discuss the 2026 budget with Prime Minister Benjamin Netanyahu. This budget includes plans to boost the economy and tackle rising living costs. The budget is expected to be presented to the cabinet on December 4th. However, approval by the end of the year seems unlikely. Israeli law requires the budget to be approved by the end of March, or else new elections must be held. The approval process is expected to be tough. The government has been divided in the past two years over issues like the Gaza war, the ceasefire, and demands from ultra-Orthodox Jewish parties. These parties want exemptions from military service for seminary students. The 2026 budget is not just about numbers. It reflects the political tensions and divisions within the government. The path to approval is uncertain, and the outcome could shape Israel's political future.