Israel’s parliament on Thursday approved the draft of the 2026 state budget, giving Prime Minister Benjamin Netanyahu short-term political breathing room and averting the immediate risk of a snap election.
In a closely contested vote, lawmakers backed the spending plan 62–55, allowing the government to move forward with a budget totalling 662 billion shekels ($214.43 billion), excluding debt servicing. The draft also sets a budget deficit ceiling of 3.9% of gross domestic product for the year.
Budget Still Faces Tough Road Ahead
While the initial approval marks a significant milestone, the budget — along with a broader economic package — still faces an uphill battle before final passage. Under Israeli law, the government must secure full parliamentary approval by the end of March, failing which the Knesset would automatically dissolve, triggering early national elections.
Political analysts say the coming weeks could prove critical for Netanyahu as divisions within his governing coalition continue to deepen.
Coalition Tensions Persist
Internal rifts within Netanyahu’s alliance have been simmering for more than two years, driven largely by disagreements over the war in Gaza, the October ceasefire, and growing friction over mandatory military service.
Several ultra-Orthodox Jewish lawmakers abstained from voting on the budget, citing the government’s failure to pass legislation exempting religious seminary students from compulsory military conscription.
However, Netanyahu’s other right-wing coalition partners — along with opposition parties — strongly oppose such exemptions. They argue that ultra-Orthodox men must share the burden of military service, especially after prolonged fighting in Gaza and Lebanon, which has claimed the lives of nearly 1,000 Israeli soldiers over the past two years.
Netanyahu’s Political Test Continues
Although Thursday’s vote postpones the threat of an immediate election, the fragile coalition remains under pressure. With ideological differences hardening and public scrutiny intensifying, Netanyahu’s ability to push the budget through final approval may determine the survival of his government in the months ahead.