What's happened
Israel's parliament narrowly approved a 662 billion shekel budget amid deep political polarization. The government faces a March deadline to pass key military conscription legislation, with ultra-Orthodox parties threatening to block the budget over exemptions for yeshiva students. Tensions threaten early elections.
What's behind the headline?
The Israeli budget debate exposes the fragility of Netanyahu's coalition, which is strained by disagreements over military conscription and religious exemptions. The support from ultra-Orthodox parties hinges on legislative concessions, risking a government collapse if demands are unmet. The budget's passage is crucial to avoid early elections, which Netanyahu opposes due to political instability. The conflict over military service reflects deeper societal divisions, with ultra-Orthodox parties prioritizing religious exemptions, while mainstream parties emphasize shared responsibility after recent military losses. The outcome will significantly influence Israel's political stability and policy direction in 2026. The government’s survival depends on balancing religious interests with national security needs, a challenge that will shape Israeli politics for months to come.
What the papers say
The New Arab reports that the budget narrowly passed with 62-55 votes, amid coalition tensions over military service exemptions for ultra-Orthodox yeshiva students. Reuters highlights the political pressure on Netanyahu to pass the budget before the March deadline, with support from ultra-Orthodox factions like Shas and Degel HaTorah, but opposition from others. The Times of Israel emphasizes the deepening polarization within the coalition, with threats of early elections if key legislation, especially the military conscription bill, is not approved. All sources agree that the budget's approval is critical to maintaining government stability, but the core issue remains the exemption law, which could trigger a government collapse and snap elections if unresolved.
How we got here
Israel's government is under pressure to approve its 2026 budget by the end of March, as required by law. The budget, totaling 662 billion shekels, is part of an economic plan amid ongoing political tensions. The coalition has splintered over disagreements related to the war in Gaza, ceasefire agreements, and demands for exemptions from military service for ultra-Orthodox yeshiva students. The issue of conscription has become a key point of contention, with ultra-Orthodox parties seeking exemptions, while others argue shared military service is necessary after recent conflicts in Gaza and Lebanon.
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Benjamin Netanyahu is an Israeli politician serving as Prime Minister of Israel since 2009, and previously from 1996 to 1999. Netanyahu is also the Chairman of the Likud – National Liberal Movement.
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The Knesset is the unicameral national legislature of Israel. As the legislative branch of the Israeli government, the Knesset passes all laws, elects the President and Prime Minister, approves the cabinet, and supervises the work of the government.