Finance Ministry

The 2026 budget passed its first test, yet the battles over defense, taxes, and reforms expose a government more focused on managing crises than shaping policy.

Officials in the Gaza border councils warned that “such a move will directly harm the ability to rehabilitate and develop the region after the events of October 7."

Taras Kachka, Deputy Prime Minister responsible for European integration and trade, will head a delegation to Israel in two weeks.

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Englman concluded that the state must now commit to sweeping structural reforms.

Annual inflation in Israel remains unchanged at 2.5%, keeping inflation well below the upper limit of the Bank of Israel's annual target range of 3%.

Trapped profits refer to undistributed profits on which “only” 23% company tax was paid. In many cases, the profits were plowed back into the business of the company concerned.

The IDF is still furious with Smotrich and the government for failing to draft haredim in large numbers, which would ease the service time of other sectors.

The ministry said the reform is part of the state budget presented this week and aims to encourage Aliyah and strengthen integration into Israeli society and the economy.

Rejecting a Hamas exchange proposal, Smotrich emphasizes eliminating terrorists and backs Israel’s independence in Gaza, despite ongoing US involvement in stabilization efforts.

A new report warns that a lack of fiscal preparedness exposed deep weaknesses in Israel's wartime economy, leading to budget breaches and future borrowing risks.