IDF plans massive NIS 130 billion buildup, including aircraft, munition factories

The Israel Defense Forces (IDF) and the Defense Ministry are preparing a substantial NIS 130 billion plan for military acquisitions, encompassing fighter jets, munitions, and the establishment of advanced weapons production facilities. This initiative is a direct consequence of Prime Minister Benjamin Netanyahu's December 2025 approval for a NIS 350 billion increase in the defense budget over several years.

The multi-year framework aims to bolster the defense establishment's self-reliance, particularly in light of potential embargoes. However, progress has been hampered by disagreements with the Finance Ministry, which has raised concerns about the budget's feasibility for future years without a finalized defense budget base. The Finance Ministry stated, "The defense establishment’s budget base is very high, and there is not enough money for everything."

Senior IDF officials consider this buildup critical for enhancing the military's strength over the next decade. Negotiations between the Finance Ministry, Defense Ministry, and IDF have been ongoing for three months, but significant gaps persist. These discussions are further complicated by the IDF's expanded operational missions in Gaza, Syria, and Lebanon, which have necessitated the mobilization of tens of thousands of reservists, creating an estimated NIS 40 billion budget gap.

The Finance Ministry has proposed budget cuts, suggesting a NIS 115 billion allocation over a decade, a figure the IDF, Defense Ministry, and National Security Council have reportedly agreed to compromise on. This comes as other Middle Eastern and European armies are significantly increasing their defense spending. The ongoing negotiations are also grappling with manpower shortages in the regular army, standing army, and reserves, adding another layer of complexity to the defense budget discussions.

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The defense establishment’s budget base is very high, and there is not enough money for everything.