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About 10% of the defense budget or 1% of GDP is US military aid that can be spent only on US military hardware.



Err, Facts can't be made up.


? Israel defense budget is about 20 billion these days the military aid to Israel is about 2.5 billion without special congressional allowances. Israel’s GDP is ~320 or so billion.

And if you wondering about the reason for discrepancies from the article above it's because that one is from 2012 the budget is larger and the US dollar devaluation against the Israeli Shekel by 15% since then, in fact fluctuations of the US Foreign Military Financing (FMF) as portion of the Israeli Defense budget are often due to currency exchange as much of the Israeli budget allocated in local currency is spent locally while the FMF is spent over in the US in dollars.

It's also important to note that the Israeli allocation of the budget does not include FMF or any other aid so when Israel allocates say 18 billion USD equivalent in local currency in the budget that is the amount to which the government will fund the defense ministry, beyond that the defense ministry has it's own internal budget which is funded via the Israeli government budget, FMF as well as any additional revenue streams of defense ministry such as rent, dividends from it's share of now privatized national defense contractors like IWI (form Israeli Military Industries) and IAI etc.




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