The defence budget will rise by more than $10 billion, exceeding $45 billion -- more than double the 2023 allocation before the Gaza war was sparked by Hamas's attack on Israel that year.

Defence spending has been steadily increasing since then.

The overall budget stands approximately around $245 billion.

If a budget is not passed by the end of March, as required by Israeli law, it will automatically trigger the fall of the government and new elections.

In addition to fighting the new war against Iran with its US ally since February 28, Israel is also battling in southern Lebanon against the Iran-backed Islamist movement Hezbollah.

The Israeli press reported on March 15 that the government had approved an advance of $827 million for emergency military purchases related to the ongoing war.

Ahead of the vote, lawmakers debated the budget proposals late on Sunday. Far-right Finance Minister Bezalel Smotrich called it a "historic turning point" for Israel.

"We have the capacity to reshape the Middle East. This budget positions the nation to win," Smotrich said.

"We are passing this budget under a right-wing government committed to fulfilling its term and achieving its missions in security, the economy, and judicial reform.

"This term will be remembered as a historic turning point for the State of Israel, redefining both our security approach and our economy," Smotrich added.

Smotrich also said that the Israel's macroeconomic performances "astonishes the world and defies all forecasts" despite the war.

- 'Greatest theft' -

By contrast, the main opposition leader, Yair Lapid, described it as "the greatest theft in the state's history".

"Six billion shekels are coalition funds that this government is allocating to itself -- to corruption and draft evasion," Lapid said.

"The Israeli public is not foolish. It understands that this budget is a windfall for the corrupt and for those who evade responsibility -- celebrating at our expense," he added.

"The next budget will be directed entirely toward those who serve, work, and pay taxes - the Israeli middle class, the very people who are the primary victims of this flawed and distorted budget."

Earlier this week, Lapid had lashed out at the government over its handling of the war in Iran, specifically slamming delays in legislation that would allow ultra-Orthodox Jews, who are largely exempted from military service, to be conscripted.

The law aligns with the demands of a broad majority of Israelis, who are increasingly opposed to the ultra-Orthodox exemptions.

Prime Minister Benjamin Netanyahu, who relies on his ultra-Orthodox party allies to maintain power, has used a range of tactics to delay the legislation's adoption.

The surge in defence spending in the budget will lead to a three-percent cut across all other ministries, which was also strongly criticised by Lapid.

However, Netanyahu's government, reliant on the support of its ultra-Orthodox and settler allies for its survival, has approved a significant increase in funds earmarked exclusively for them.

Ultra-Orthodox parties will receive more than $750 million in additional budget funds for private schools they control.

In addition, despite the sweeping cuts imposed on all civilian budgets, funding for the settlements has remained unchanged, according to a report by the anti-settlement group Peace Now.

The Peace Now report denounced the measure as "daylight robbery of public funds" for the benefit of a small group within the government's base.

On December 4, the government adopted a decision to invest more than $875 million over the next five years in developing settlements in the occupied West Bank, which are illegal under international law.