The Knesset has approved the first reading of the 2026 budget by 62 votes to 55. The budget framework approved by the cabinet for the state budget is NIS 662 billion, up from NIS 650 billion in the revised 2025 budget, which was updated following major budgetary additions for the Ministry of Defense due to the war. The Ministry of Finance and the Bank of Israel expressed concern about a provisional budget if the state budget is not approved by the Knesset by the end of March. The defense budget for 2026 is NIS 112 billion, and there is concern in the Ministry of Finance that the Ministry of Defense will find this sufficient. The budget deficit target for 2026 is 3.9% of GDP, and it was increased from the original proposed target of 3.2%.