In debate over budget, Smotrich says it will support troops, stem rising cost of living

Opening the debate ahead of the first reading of the 2026 state budget, Finance Minister Bezalel Smotrich declares that the budget will support reservists, career soldiers and civilians, whom he describes as not just “lines in a spreadsheet.”

The budget is being advanced “without populism, and with responsibility toward the public good,” he says, boasting that Israel’s economic performance under the current government has been “nothing less than amazing.”

“After two years of a costly war, the State of Israel is a powerhouse of strength. We predict a 5.2 percent growth in GDP in the coming year. Inflation is returning to the target range, between 2% and 2.5%, we are curbing the cost of living and preserving the value of the money of Israeli citizens,” says Smotrich.

“Our currency is demonstrating extraordinary strength against the dollar and is trading at a historic rate,” he continues, adding that “when the shekel is strong, prices fall” and calling on the governor of the Bank of Israel to “greatly lower the interest rate, quickly, and free the economy for growth.”

“High-tech is at an all-time peak. In the first three quarters of 2025, investment flows into Israel totaled $19 billion. We surpassed pre-war levels. The stock exchange is at record highs, with a 100% increase since the start of the war. The labor market is tight, and state revenues in 2025 rose by NIS 35 billion above the forecast as a result of expanding the tax base and cracking down on undeclared capital,” Smotrich boasts.

“The state budget before you is NIS 660 billion. After two years, we are beginning to bring the defense budget into a reasonable framework and increase investment in education, welfare, digitization, and more. This budget is not just an economic document, it is a declaration of intentions and tells the world that the State of Israel and the Israeli economy are stronger than ever.”