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Israel Halts Interceptor Missile Purchases Amid Budget Standoff

(MENAFN) A budget standoff between Israel's defense and finance ministries has frozen purchases of interceptor missiles for the country's air defense systems, Israeli media reported Tuesday.

Channel 13 said the dispute revolves around 15 billion shekels ($4.92 billion) that military officials say should already have been transferred into the defense budget. The Finance Ministry pushed back on that characterization, arguing the funds weren't required for immediate operations but were instead meant to cover debt the military had accumulated without prior authorization.

According to an Israeli broadcasting corporation agency, Israel's 2026 military budget was originally set at 143 billion shekels ($47 billion) before Prime Minister Benjamin Netanyahu ordered it increased to 183 billion shekels ($60 billion) in the wake of Israeli attacks on Iran and Lebanon. A first installment of 15 billion shekels was due in August but has still not been transferred.

The broadcaster reported earlier this month that the funding impasse was already disrupting Israeli military operations in Gaza, the occupied West Bank and Lebanon, compounding existing shortages of spare parts.

Army Chief of Staff Eyal Zamir acknowledged the dispute in late August, saying the military was contending with what he called a "campaign" over funding.

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