The Finance Committee, chaired by MK Hanoch Milwidsky (Likud), held on Sunday a debate on the additional budget for 2025, with the participation of Minister of Finance Bezalel Smotrich.
At the opening of the discussion, there was an exchange between representatives of bereaved families and wounded combat veterans with the Minister of Finance. The families of the fallen expressed to the minister their frustration over the lack of necessary budgets and accused the Treasury of deliberate foot-dragging. Representatives of the wounded emphasized the severity of their comrades’ situation, noting that dozens of shell-shocked soldiers have committed suicide since the start of the war. They said they were being given pills instead of actual treatment, and that the problem is not money but rather an inadequate response.
Minister Smotrich stressed that he greatly values the victims and noted that the main issue is a lack of sufficient professional knowledge about proper treatment, both in Israel and abroad. He further noted that NIS 2 billion have been allocated to the mental health system, emphasized that he has doubled the salaries of psychologists in the public service to attract professional personnel, and added that efforts are being made to train people in paramedical professions, and even to introduce AI-based diagnostic systems — but that the processes, and especially the training of personnel, take time.
At the same time, Minister Smotrich stated that the primary responsibility for treatment lies with the Defense Ministry’s Rehabilitation Department. Regarding requests to increase grants for bereaved families, he noted that the Defense Ministry opposes legislation that would increase pensions for bereaved parents, arguing that it could harm their integration into society.
As for the additional budget itself, the minister stated: “This budget addition, totaling about NIS 28.9 billion, does not include coalition clauses and civilian additions. It is a budget entirely dedicated to essential security expenditures needed for the continuation of the war, procurement of munitions and equipment, and support for the operational needs of the IDF. Its rapid approval is critical, because without approval, vital activity in government ministries will be halted, and the Ministry of Defense will be forced to stop activity beyond the approved deviation.
“Despite the security and economic challenges, with a lot of divine assistance, the State of Israel is demonstrating exceptional economic resilience. Israel’s macroeconomic indicators are excellent — low unemployment, a rising stock market, record foreign currency reserves, and growth in high-tech investments. This is thanks to sound fiscal management and significant measures against undeclared capital, which reduced the deficit beyond the original forecasts,” he said.
The Minister of Finance also addressed the operation in Iran, saying “The state budget we approved for 2025 assumed certain scenarios. We also anticipated an operation against Iran, and certain components were budgeted in advance. Along with that, the reference scenario changed. After considerable debate, I can say that the successes, with enormous divine assistance, led to higher costs. Many more targets were struck, and there were many more successes. To finish it in 12 days costs more — more munitions, more flight hours, many more targets (for thwarting purposes) added. The ‘value for money’ in the operation in Iran was exceptional. Many of the expenses were, among other things, the result of the hostage deal, which I opposed. Stopping and resuming the fighting is much more intensive.
“I estimate that we will end the year with less than a 5% deficit, even though we are formally increasing it, according to the Chief Economist’s forecast, to 5.2%,” he said.
Responding to questions from Knesset Members about the cost of Operation Gideon’s Chariots II, Minister Smotrich said “The Chief of Staff is requesting an addition for Operation Gideon’s Chariots II. Our assessment is that they are mistaken, because when we agreed on the 2025–2026 budget addition, it included three months of intensive fighting that did not occur since we were in a ceasefire. But we will discuss this — they will meet with the Defense Ministry and we will see. I find it hard to see the need to reopen the budget.”
Minister Smotrich warned against a failure to approve the budget, saying
“This is only war-related defense spending, no coalition allocations — only what the IDF has fired, and what is required for the war to continue. Otherwise, we will have to absorb the NIS 30 billion, which is the welfare and support budgets.
“I call on all members of the committee to act with national responsibility and approve the additional budget without delay. We must continue to preserve the trust of the public and the markets, and provide the IDF with all the tools it needs to complete its missions,” the minister concluded.
