Gaza War Costs Exceed $140B Who Bears Burden in Israel

The war on the Gaza Strip that lasted for approximately three years is the most costly in Israel's history, with expenses totaling around 420 billion shekels ($142 billion). It is expected to exceed half a trillion shekels ($169 billion). This war has led to a significant increase in public debt and has created the need to boost defense spending in the coming years, with Israel's defense expenditures projected to reach about 1.5 trillion shekels (approximately $500 billion) over the next decade. The substantial rise in the defense budget since 2020, reaching 175.9 billion shekels in 2025, raises questions about the adequacy of security funding, its high costs, and the burdens that the upcoming government will have to bear after the elections—especially amidst decreasing American aid, increased taxes, and government bond sales aimed at maintaining the value of the shekel.

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