Israel

Knesset passes largest ever state budget to avert early elections

The bill carried on the promise of greater defence spending, but set up a fresh row over Charedi conscription

March 30, 2026 10:33
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Finance Minister Bezalel Smotrich speaks during a debate on the state budget in the Knesset on March 29, 2026 (Flash90)
1 min read

In the early hours of Monday morning amid air sirens, Israel’s Knesset voted to pass the largest state budget in Israel’s history, raising the defence budget to a record NIS 850.6 billion (£203.7 billion), with billions of shekels also allocated to Charedi educational institutions.According to Channel 13, the budget increased allocations to Charedi educational institutions by more than NIS 1 billion, from NIS 4.1 billion ($1.3 billion) to NIS 5.17 billion ($1.65 billion).

Shas and United Torah Judaism (UTJ), the Knesset’s two major Charedi parties, had both threatened to pull their support for the coalition if the long-awaited conscription law was not passed first.

Had the budget failed to pass before Tuesday, it would have necessitated early elections.

However, following the outbreak of war with Iran, Finance Minister Bezalel Smotrich said the conscription bill would have to be shelved to allow the government to urgently implement the increase in defence spending, largely drawn from cuts across the board to other departments.

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