Israel raises defence budget

The Israeli parliament has approved a substantial increase in defence spending, allocating an additional 30 billion shekels to cover the first weeks of military operations linked to the wars involving Iran and Lebanon. In total, the defence budget now stands at 142 billion shekels, which is more than double the level recorded before the Hamas attack of 7 October 2023. This demonstrates that security expenditure has become one of the central priorities of the Israeli state.

At the same time, Israel is reinforcing its defence-industrial base. The Ministry of Defence has signed a contract worth around 150 million shekels with Elbit Systems for the delivery of tens of thousands of 155 mm artillery shells. Production will take place in facilities across the country, where employees are working continuously in a three-shift system. This underlines not only the scale of demand for munitions, but also the pressure placed on Israel’s domestic defence sector.

These decisions form part of a broader effort to increase strategic autonomy in wartime conditions. For years, Israel relied heavily on foreign military supplies, above all from the United States. Now, however, the authorities are clearly seeking to reduce that dependence and strengthen national production capacity. In practice, this means that the war is reshaping not only Israel’s operational priorities, but also the structure of its defence economy.