Opposition lawmakers fume over allocation of $1.8 billion with no guardrails

By Ariela Karmel

You will receive email alerts from this author. Manage alert preferences on your profile page

You will no longer receive email alerts from this author. Manage alert preferences on your profile page

17 March 2026, 9:17 pm

Edit

Ariela Karmel is a political correspondent at The Times of Israel. She previously reported for Calcalist and Haaretz. She holds an MA in Middle Eastern and African History from Tel Aviv University and a BA in Political Science from the University of British Columbia.

A heated Knesset Finance Committee discussion reveals that a NIS 5.8 billion ($1.8 billion) “civilian emergency reserve” the government is seeking to add to the 2026 budget has no clear legal mechanism governing how the money can be spent.

The committee is discussing Finance Minister Bezalel Smotrich’s bill, which advanced in its first reading in the Knesset yesterday to amend the as-yet-unpassed budget amid the war against Iran and Hezbollah by raising the deficit ceiling, increasing the legal expenditure cap by NIS 32 billion ($10.2 billion), and creating a contingency reserve of up to NIS 7 billion ($2.2 billion) for security needs if war-related defense spending exceeds NIS 28 billion ($9 billion).

However, unlike other components of the budget, the NIS 5.8 billion allocation is not anchored in legislation with a defined oversight mechanism.

Finance ministry representatives acknowledge that a formal spending mechanism had been proposed by ministry officials during internal government discussions, but was ultimately omitted by the government against their recommendation.

They say that the funds are designated for “additional expenses directly resulting from Operation Roaring Lion,” and any use of the funds would require approval by the Finance Committee.

Opposition lawmakers warn that this lack of safeguards leaves the funds vulnerable to misuse, particularly in an election year, raising concerns they could be diverted toward political or coalition spending.

“In an election year, you cannot put NIS 5.8 billion in the government’s hands without oversight or meaningful Knesset involvement,” says Yisrael Beytenu MK Hamad Amar.

Yesh Atid MK Naor Shiri says that “in all the budgets we’ve reviewed, there has never been money held without a clear framework or mechanism. This has simply never been done.”

Shiri, along with Yesh Atid chair Yair Lapid and MK Vladimir Beliak, say they have sent a “pre-litigation warning” to the Finance Ministry, Knesset legal advisor, and attorney general, demanding the cancellation of the funds, which they describe as an unlawful “blank check” for the coalition to use for political purposes.