The 'budget hole' in the IDF - and the growing pressure: the government will freeze sensitive deals

Pressure is mounting in the IDF and the Defense Ministry: critical procurement deals, including two fighter squadrons, are at risk of delay due to the 'budget hole' of about 40 billion shekels and the lack of a decision on the numerator mechanism. The Prime Minister ordered the transfer of 12 billion shekels, but they have not yet been transferred. Without a signature in the coming two weeks, production lines will be given to other countries.

Pressure is mounting in the IDF and the Defense Ministry on the government to advance critical procurement deals, against the backdrop of the 'budget hole' estimated at about 40 billion shekels after about three years of intense fighting on several fronts. Prime Minister Benjamin Netanyahu acknowledged the gap and ordered the immediate transfer of 12 billion shekels and an additional 3 billion, but the funds have not yet been transferred. The Finance Ministry postponed handling the remaining gap of 25 billion shekels to an arrangement in October-November. Meanwhile, a framework of 350 billion shekels was approved for force building, with a first phase of 131 billion shekels for the procurement of two fighter squadrons: a fourth squadron of F-35s and a second squadron of F-15s. However, all deals are delayed due to the lack of a decision on the 'numerator' mechanism for deficit control, which the Finance Ministry demands to expand through legislation. The IDF warns that without a signature in the coming two weeks, places on production lines will be given to other countries, and the Knesset is expected to disperse for recess, which will worsen the delay. Meanwhile, a framework was approved for the procurement of new Apache helicopters, but more urgent is advancing legislation for ammunition, space developments, and fighter jets. Talks with American companies to defer payments to 2030 have yielded no progress.