Israeli budget row halts interceptor missile purchases: Report

A budget dispute between Israel’s defense and finance ministries has halted purchases of interceptor missiles for air defense systems, Israeli media reported Tuesday.

Israel’s Channel 13 said the dispute centers on 15 billion shekels ($4.92 billion) that the military says should have been transferred to its budget.

The Finance Ministry disputed the military’s account, saying the money was not needed for immediate operations but to cover debt accumulated without approval.

Israel’s 2026 military budget was initially set at 143 billion shekels ($47 billion) before Prime Minister Benjamin Netanyahu ordered it raised to 183 billion shekels ($60 billion) following Israeli attacks on Iran and Lebanon, according to the Israeli Public Broadcasting Corporation.

A first 15 billion-shekel payment was due in August but has yet to be transferred.

The broadcaster said earlier this month that the funding crisis was already affecting Israeli military operations in Gaza, the occupied West Bank and Lebanon alongside shortages of spare parts.

Army chief of staff Eyal Zamir acknowledged the budget dispute in late August, saying the military was also facing a “campaign” over funding.