Israeli military is facing growing shortages of ammunition, spare parts and vehicles, with production lines at major defense contractor Elbit Systems potentially shutting down and operational readiness already affected, Kan Israeli news channel reported.
According to the report, the Israeli security establishment has warned that Elbit may halt production of Merkava tank shells in the coming days, while artillery shell production could stop in October and mortar shell production in November. The shutdowns could lead to the loss of workers, machinery and technical expertise, making it difficult to restart production later.
Several tank battalions have also reportedly been grounded due to a shortage of spare parts, while hundreds of Humvees damaged during the fighting in Lebanon remain out of service, hampering the military’s ability to transport troops in combat zones.

“We have debts of more than 15 billion shekels to the defense industries,” a military source told Kan. “Tank battalions are suffering from a shortage of spare parts, and hundreds of vehicles destroyed in Lebanon have not been repaired.”
The crisis has also reportedly reached the intelligence branch, where cloud storage capacity is full, forcing some units to delete intelligence material or refrain from storing new information, including satellite imagery. The contracts of dozens of permanent service members were also cancelled, who were discharged from service due to lack of budget.
The shortages stem partly from delays in transferring additional defense funds. Israeli 2026 military budget was initially set at about 143 billion shekels before Prime Minister Benjamin Netanyahu ordered an increase to 183 billion following the war against Iran and fighting in Lebanon.
However, the first 15-billion-shekel installment, due in August, has yet to be transferred, while the Finance Committee is expected to consider approving only 11 billion shekels.
“The gap is already limiting the IDF’s ability to operate in the West Bank, Gaza and Lebanon, and above all, its preparedness to confront Iran,” the military source warned, referring to Israeli occupation forces. “If the funds are not transferred, we will not even be able to maintain basic continuity and troop readiness.”
Source: Al-Manar English Website