JERUSALEM - Israeli Defense Minister Ehud Barak on Monday lashed out at the Finance Ministry for slashing the defense budget during what he said was one of the most difficult moments for Israel due to the complex situation in the region.

Speaking to the Knesset parliament's Foreign Affairs and Defense Committee, Barak said the defense budget has constantly decreased over the years.

"With the current instability in the region, this fact alone should end the argument on cutting the defense budget," he said, referring to the Arab uprising in the Middle East.

Barak also compared his ministry's annual budget of 1986, when it was at 24 percent of the overall budget, to the one slated for 2012, that accounts for 13 percent. Barak believes that this decrease poses a threat to Israel's security in the face of mounting threats on all its borders.

"The quickly unfolding events require alertness, preparedness and proper deployment from the defense establishment, with Hezbollah, Hamas and Iran also in the background," Barak said.

A recent report from local media estimated that Israel's military budget is at its lowest ever, with deficit of NIS 9 million ($2.30 billion) that may also affect missile defense systems like the Iron Dome and Arrow anti-missile systems.

Finance Minister Yuval Steinitz, who is leading the fight for defense budget cuts, argued that the defense budget could withstand more cuts, and demanded last week during a conference more clarity on details of the army's financial plan.

"This is an argument over transparency and control over the defense budget," Steinitz told the Sderot Conference for Society on Tuesday.