Knesset passes NIS 850.6B wartime budget 62-55, largest in Israeli history, averting early elections

The Knesset passed Israel's 2026 state budget 62-55 in a final reading on the night of March 29-30, averting government collapse and early elections — which would have been automatically triggered had the budget failed to pass by Tuesday's constitutional deadline. Elections remain scheduled for October. The NIS 850.6 billion ($271 billion) spending plan is the largest in Israeli history. The Defense Ministry's allocation: NIS 142 billion ($45.3B) base, plus NIS 22 billion ($7B) in income-dependent expenditure, and NIS 82.2 billion ($26.3B) in long-term spending commitments — a defense spending record. The budget also includes: deficit ceiling raised to 4.9% of GDP, permissible government expenditure increased 8.8% (~NIS 60B/$19B), and a NIS 5.8 billion ($1.8B) 'civilian emergency reserve' for security/civilian conflict expenses. The vote session was repeatedly interrupted by Iranian BM salvos triggering sirens in the Knesset area, causing lawmakers to shelter mid-debate. The opposition ran a 14+ hour filibuster. Late-night amendments allocated hundreds of millions of shekels to Haredi educational institutions and priorities favored by ultra-Orthodox coalition partners, reportedly circumventing restrictions previously imposed by Attorney General Gali Baharav-Miara due to lack of Haredi IDF enlistment. Finance Minister Smotrich called the budget proof of 'amazing' economic performance under war conditions (strong shekel, record high-tech investment, low unemployment). Opposition Leader Lapid called it 'the biggest theft in the history of the country' and accused the coalition of funding yeshivas while citizens sheltered from BMs.