Israel war costs approach 500 billion shekels as national debt rises

Reports from Haaretz indicate that the war in the Gaza Strip has become the most expensive in Israel's history, with total costs reaching approximately 420 billion shekels (roughly 142 billion dollars). Projections suggest the cost may soon approach the half-trillion shekel mark.

Beyond direct military spending, the conflict has significantly impacted the national economy. The national debt has increased by approximately 400 billion shekels. The ongoing security situation is expected to necessitate a massive increase in defense budgets over the next decade, with estimates suggesting up to 1.5 trillion shekels could be spent on defense in the coming ten years.

Defense spending as a percentage of GDP has risen to 7.4% in 2025, a figure significantly higher than that of other Western nations such as the United States, France, Germany, and the United Kingdom. This surge in expenditure has raised critical questions regarding long-term fiscal sustainability and whether such high spending effectively guarantees security.