Israel's finance minister is expected to present a proposal to the Cabinet within days to increase the defense budget by billions of shekels. The plan would raise the state budget deficit by 0.3 percent to 0.5 percent above the current 2026 target of 3.9 percent.
Prime Minister Benjamin Netanyahu and the finance minister are also considering the creation of a special budgetary 'box' to cover part of the war-related expenses. This mechanism would allow some of the additional defense spending to be financed separately, preventing it from directly impacting the official state budget figures.

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