Ammon News - Israel's parliament gave initial approval to the 2026 state budget draft on Thursday, handing Prime Minister Benjamin Netanyahu a temporary political reprieve by averting the immediate prospect of an early election.

Lawmakers voted 62-55 in favor of the spending plan, which totals 662 billion shekels ($214.43 billion), excluding debt servicing, and sets a budget deficit ceiling of 3.9% of gross domestic product this year.

The budget, as well as an accompanying economic plan, still faces a difficult path to final approval amid deepening polarisation within Netanyahu's governing coalition. Under Israeli law, the budget must be passed by the end of March or parliament would automatically dissolve, triggering a snap election.

Reuters