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Israel's Finance Ministry has submitted the 2026 budget draft to the Knesset, proposing a significant increase in defense spending to NIS 112 billion ($35.45 billion) amid ongoing coalition tensions. The budget, which includes reforms such as reduced dairy tariffs and a tax on e-cigarettes, must be approved by the end of March to prevent early elections. Political infighting, particularly regarding military conscription exemptions for ultra-Orthodox parties, poses a challenge to securing support for the budget.