The Finance Ministry has submitted the draft for the 2026 state budget to the Knesset, setting the stage for a preliminary vote on Wednesday. Under current law, failure to pass the budget by the end of March would lead to the automatic dissolution of the Knesset and early elections. The proposed budget and its accompanying economic plan are expected to face significant challenges during the approval process.

If the budget passes its initial reading, it will move to the finance committee for potential revisions before two final votes. Despite earlier threats to withhold support, the ultra-Orthodox Shas and Degel HaTorah parties are expected to back the budget in the first vote but may withhold support for subsequent votes until their demands regarding military service exemptions for yeshiva students are addressed.