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Defense Ministry Debt to Contractors
Estimated debts owed to major Israeli defense firms.
Primary Sources
Israel Bolsters Military with New Combat Aircraft Deal
Israel has finalized a significant deal to purchase advanced F-35 and F-15IA fighter jets from Lockheed Martin and Boeing, worth tens of billions of dollars. Announced by the defense ministry, this acquisition is part of a larger $119 billion plan to strengthen the country's military capabilities.Prime Minister Benjamin Netanyahu emphasized that much of the defense budget will be dedicated to producing munitions domestically, with plans to develop groundbreaking aircraft. This move aims to ensure Israel's air superiority and address regional threats effectively.The newly approved fighter squadrons are crucial for the Israel Defense Forces' future development, as they aim for technological advancements in autonomous flight and defense systems. Defense Minister Israel Katz highlighted the importance of continuous investment to maintain Israel's military edge. (With inputs from agencies.)
Israel owes billions to domestic defense firms
State debt to defense contractors has surged to about $3.5 billion as wartime procurement accelerates to replenish depleted munitions; officials blame underfunding, while Finance Ministry questions defense budget managementYuval Azoulay/Calcalist|The Defense Ministry owes the three largest defense companies — Rafael, Israel Aerospace Industries and Elbit Systems — an unprecedented sum of about $3.5 billion, Calcalist has learned. The largest share is owed to Rafael, the manufacturer of the Iron Dome, David’s Sling and Iron Beam air defense systems, totaling about $1.6 billion. About $1.1 billion is owed to Israel Aerospace Industries, which produces the Arrow missile system, and about $800 million to Elbit Systems, run by Mikey Federmann.As of last November, the Defense Ministry’s debts to companies supplying weapons and military equipment to the IDF totaled about $2.7 billion. The sharp increase in recent months is tied to accelerated procurement aimed at replenishing stocks depleted during the prolonged war and improving the military’s readiness to handle multiple challenges across various fronts. Delayed payments to major defense firms, resulting in multibillion-dollar debts, have become a common practice in recent years, characterized by extensive procurement alongside persistent budget constraints.2 View gallery Iron Dome system (Photo: Israeli Air Force)The 2026 defense budget stands at about $39 billion, after initially being set at about $30 billion at the start of the year. Against the backdrop of the second war with Iran, which also reignited fighting on the Hezbollah front in Lebanon, the budget was increased in March by about $8.6 billion.The addition, approved by Prime Minister Benjamin Netanyahu despite opposition from the Finance Ministry, brought the budget to the level the Defense Ministry had demanded during discussions late last year. However, given the lack of decisive outcomes on any of the main fronts that have heavily engaged the IDF since the outbreak of the October 7 war, even the March increase has not been sufficient.The army is deployed in security zones in southern Lebanon, in areas it captured on the Syrian side of Mount Hermon, and along the a buffer zone inside the Gaza Strip. Alongside these deployments looms the question of renewed war with Iran.Executives in the defense industries have expressed frustration with the growing normalization of delayed payments. Defense Ministry officials say the debts will be paid in line wi...
Israel greenlights plan to buy new fighter squadrons from ... - MSN
Lockheed Martin Corp. LMT and Boeing Co. BA are set to supply Israel with two additional fighter squadrons after Israel's defense ministry said on Sunday it signed off on a large aircraft-buy plan ...
Israel Just Quadrupled Its PR Budget to $730M. Experts Say It Won't ...
Spending on image should be "like investing in jets, bombs and missile interceptors," Israel's foreign minister says. (JTA) Israel is betting nearly three-quarters of a billion dollars that it can talk its way out of a reputation crisis. Lawmakers in Jerusalem approved a 2026 national budget last month that includes roughly $730 million for public diplomacy — the broad category known ...
