The government has approved the 2026 state budget, with total expenditures set at 662 billion shekels. This decision follows a key agreement between the Finance Ministry and Defense Ministry over defense funding, which had been the main obstacle to passing the budget. The compromise sets the defense budget at 112 billion shekels, a figure that is lower than initial defense requests but higher than the Treasury's original proposal. The resolution of this dispute enabled the government to move forward with the full budget approval.