The Cabinet approved the draft of 450,000 reservists through emergency orders in the next three months. This is a record number in terms of the scale of potential recruitment from the start of the war, moving and expanding reservists by the end of May.
“2025 is expected to be a year of war, similar to 2024,” how much draft of the cabinet resolution means. However, the state budget for 2025, made by a spine in two months ago, not planned to support a more year war. This means that the military spending step works above the planned value.
Some ministry in financial sources are that in the event the plan is executed and the intense fight of Gaza continues for a long time, no budget fee and give more for defense expenditure.
The Ministry of Finance was initially using the “Emergency Fund” set up in the budget for such a case, in an unplanned expansion of the fight. However, the Ministry of Finance did not guard the fund, and outside the NIS 10 billion allotted, the NIS 3 billion remain before continuing fighting. It’s not enough.
A reserve soldier costs NIS 800 per day
The state’s 2025 budgets for being built around a fiscal deficiency 4.9% of GDP is generally, with maximum use of funds for the resumption of fighting. In other words, the government considers an annual “overdraft” of NIS 98 million.
Fighting in a lasting battle expands in lack and can also cut GDP growth. Even before the decision of many call reserves, the Ministry of Finance began working on a macroeconomic forecast date, which reveals in the coming days and expects future annual growth.
The Ministry of Finance of thumb is that the average daily cost of a reserve soldier is part of the Sundane service service year. Increasing 450,000 reservists in three months is a whopping nis 32 billion.
In practice, the amount should be lower. Approved by the Cabinet dragging 450,000 men, but the army could, depending on the operation needs, calling smaller. Not all who have been drafted to serve for 3 months. Usually, a soldier who receives an emergency call-up until the end of August is entitled to the end of time, unless he is at home, if he is officially released from touring office.
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But even if the final bill charged to the Ministry of Finance is Lower, say by half, nis 16 billion is still an amount that requires breaching the spending framework in the state budget.
A series of cuts and taxes
Since October 7, hundreds of billions of cycles are required to fund war and 8ts rami ramifications for over 18 months. The government has approved many cuts and taxes to tax efforts to balance the disability.
From Raising VAT, to Increasing National Insurance Contributions, To Collecting Sick Leave from Every Employee’s Salary, Temporary Wage Cuts For Public Sector Employees, And Ending With Expanding The Additional Tax For High-Income Earners – The Treasury Has Already Managed To Anger almost every possible sector in the economy with its convergence measures.
The government, for its part, does not cut the funds in the coution, there are no close ministers and are far from its own as political issues as the army armerim. Add to this fact that next year is a year of elections, and the chance of political readiness for further cuts are farther away.
Everything to violate budget budget
The approved defense budget includes a large portion of historical terms for drafting reservists. 17 billion is intended to cover the needs of reserves for all 2025. In the first two months of the year, as yet the expense of expenditure is in accordance with the original plan. In the breakdown of the ceasefire in Gaza in March and the reserves should be strengthened, the motivation to implement falls into the plan.
The Ministry of Finance is talking about a gap of about 20 billion between budget and delay in execution of a plan to keep storms to soldiers.
The Minister of Financial Teaching in the financial smotrich of his officers, at least in recent weeks, is to do all their power without open budget. The Smotrich estimate that IDF is able to handle the content of the width of the defense budget received this year, which is above NIS 110 billion, through internal streamlining.
This may happen, if reports are from overseas about President Donald Trump’s progress in finding a hamas agreement to stop fighting at home.
Israel is in charge for some time to expand Gaza operation, and the new order provides a new validity of the scenario. But in the dynamic development of the international political arena, preparation for combat occurred in parallel with diplomatic efforts through an economic situation.
Reserve funds are spent
The smotrich plan to keep on the budget does not agree with his plan to keep the war on all the energy over time. Some of the Minister of Israel’s defense Minister Katz said, “Not like before, IDF stays in any territory David Zini, seeing an” eternal war. “
Where does the Ministry of Finance take the budget increase in the military? After using the remaining financial reserves, there are no many options left except to expand fiscal deficiency.
The Budget Division may try to raise the amount by further cutting the budgets of the Government Ministers. But after a lot of cuts last year, there is no nearly “free” budget left from cutting. Besides, the dominant feeling of the Ministry of Finance is after hitting the public repairs to the public’s creditors for more public credit creditors for the extra disabilities of the shortcomings of the shortcomings of the shortcomings of the shortcomers to reduce deficiency.
Published in Globes, Israel News in News – en.globes.co.il – On May 27, 2025.
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