The failure to transfer the necessary funding from the defense budget on time prevented the Israeli army from acquiring 12 Apache attack helicopters it had planned to purchase from Boeing.
The helicopters allocated for Israel’s production line are expected to be sold to another country on the waiting list because the payment deadline was missed. Unless an emergency intervention takes place, delivery of the new helicopters to Israel could be delayed by about three years.
Tank and armored vehicle repairs also at risk
For months, the Israeli army has warned the political leadership about the consequences of insufficient funding in the defense budget. Failure to approve the necessary budget increase has slowed the army’s efforts to develop its capabilities and raised concerns that those efforts could come to a complete halt.
The budget deficit could delay the return to service of tanks and armored personnel carriers damaged during the war. Some ammunition production lines could also be affected by the financial problems.
An Israeli security official said the failure to sign contracts amid current regional tensions and the ongoing arms race with rivals was affecting the army’s level of readiness. The official said there would be a cost to failing to make the necessary decisions.
Netanyahu and Lapid fail to agree on defense budget
Israeli Prime Minister Benjamin Netanyahu failed to persuade opposition leader Yair Lapid to support an increase in the defense budget. Michal Abadi, the Finance Ministry’s accountant general, and Hadi Zilberman, head of the Israeli army’s planning unit, were also invited to the meeting.
Lapid demanded that the budget increase be financed through funds transferred from coalition resources to the Haredi community. He argued that the funds were being used, in his words, to finance evasion of military service.
Netanyahu said the additional funding could come from higher-than-expected tax revenues. Lapid rejected the proposal, saying that no such surplus existed in Israel.
Capacity in Gaza, the West Bank and Lebanon affected
Financial problems facing the Israeli army have begun to affect its operational capacity in Gaza, the West Bank and Lebanon. Shortages of spare parts and delays in transferring billions of shekels to the defense budget have worsened the problems.
The burden facing the army has increased following military operations against Lebanon and Iran. Tensions between Netanyahu and Lapid continue over issues including the establishment of an official commission of inquiry into the failures surrounding the October 7, 2023 attack and a legislative initiative to grant the Haredi community an exemption from military service.