Israel Defense Budget Standoff Threatens Ammunition Production Lines

Israel's government did not bring a proposed NIS 40 billion defense-budget increase for approval during the week of August 24, amid Treasury opposition and warnings that ammunition orders could lapse. A senior defense official said current IDF orders for Elbit tank shells expire in September, artillery-shell orders in October and mortar-bomb orders in November, with Israel Aerospace Industries and Rafael lines also at risk. The proposal would raise the 2026 defense budget to NIS 184 billion and authorize additional weapons orders. The Treasury said agreed funds were transferred and called on defense leaders to manage the budget responsibly.