In Israel, the finance minister, Bezalel Smotrich, is set to discuss the 2026 budget with Prime Minister Benjamin Netanyahu. This budget includes plans to boost the economy and tackle rising living costs.

The budget is expected to be presented to the cabinet on December 4th. However, approval by the end of the year seems unlikely. Israeli law requires the budget to be approved by the end of March, or else new elections must be held.

The approval process is expected to be tough. The government has been divided in the past two years over issues like the Gaza war, the ceasefire, and demands from ultra-Orthodox Jewish parties. These parties want exemptions from military service for seminary students.

The 2026 budget is not just about numbers. It reflects the political tensions and divisions within the government. The path to approval is uncertain, and the outcome could shape Israel's political future.


# **Israel's 2026 Budget: A Political and Economic Crossroads**

## **Key Discussions**
- **Finance Minister Bezalel Smotrich** is set to discuss the **2026 budget** with **Prime Minister Benjamin Netanyahu**.
- The budget aims to **boost the economy** and **tackle rising living costs**.

## **Approval Timeline**
- **Expected cabinet presentation**: **December 4th**
- **Unlikely to pass by year-end**
- **Legal deadline**: Must be approved by **March 31st** or **new elections** will be triggered.

## **Challenges Ahead**
- **Government divisions** over:
  - **Gaza war**
  - **Ceasefire negotiations**
  - **Ultra-Orthodox demands** for military service exemptions
- **Budget reflects political tensions** within the coalition.

## **The Path Forward**
- **Approval process expected to be tough**
- **Outcome could shape Israel's political future**



Israel's 2026 Budget: A Rocky Road Ahead

Key Discussions

Approval Timeline

Challenges Ahead

The Path Forward

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