Israel to discharge 10,000 reservists by July amid budget crisis

The Israeli military is preparing to reduce its active reserve force by approximately 10,000 personnel by the end of July as it grapples with a severe funding crisis and mounting budgetary pressures, the Israel Hayom newspaper reported on Sunday.

The number of reservists on active duty is expected to decline from roughly 60,000 to around 50,000, according to the newspaper. It added that military officials have yet to finalize the decision, which is anticipated within the coming days.

Budget shortfall drives personnel cuts

The planned reductions come as Israel's defense establishment faces an unprecedented fiscal crisis following months of elevated military spending across multiple regional conflicts. The military is contending with a budget shortfall estimated at tens of billions of shekels, forcing commanders to slash operational expenditures and reduce reliance on reserve formations.

Israeli media outlets including Yedioth Ahronoth and Calcalist reported that the cuts would affect reservists serving in the regional defense system, including personnel assigned to protect settlements around the Gaza Strip and the occupied West Bank, as well as staff at military headquarters.

Defense and Finance ministries at odds

The planned cuts coincide with deepening disagreements between Israel's defense and finance ministries over the size of the military budget. While the Israel Defense Forces seek record spending increases to sustain operations on multiple fronts, the Finance Ministry has resisted such demands over concerns they would widen the national deficit.

The two sides have reportedly reached a temporary compromise under which additional funding would be provided on condition that the military reduce its reliance on reserve forces. Finance Ministry officials continue to oppose open-ended spending increases as the army remains engaged in operations across Gaza, the West Bank, and Lebanon.