Israel Raises Defense Budget by $2.9 Billion to Fund War with Iran

SadaNews - The government in Israel announced that it has pre-approved an addition of 9 billion shekels ($2.9 billion) to this year's defense budget to fund the war with Iran.

Finance Minister Bezalel Smotrich stated that he and Prime Minister Benjamin Netanyahu granted approval over the past few weeks, at a time when preparations were underway for the joint military operation between the United States and Israel to bomb Iran, which began on Saturday.

Smotrich noted in a video briefing to reporters on Sunday that "the deficit target for the 2026 budget, which has not yet received final approval from parliament, will be higher than the originally planned rate of 3.9% of GDP."

1,000 Compensation Claims in the First 24 Hours of War

Israeli tax authority representatives, who handle compensation for any direct property damage, indicated that within the first 24 hours of the war, 1,000 compensation claims were submitted. They added that 345 individuals were evacuated from their homes due to missile attacks from Iran.

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Direct damages are paid from a fund that draws its resources from property taxes. Smotrich stated that this fund currently has a surplus of approximately 10 billion shekels.

Government officials also said that Israel is preparing to receive shipments of goods over land, amid the closure of "Ben Gurion International Airport" in Tel Aviv, and international ships' reluctance to dock at Israeli ports.