Caution strains Israel's war funds
Israeli military data reveals that the costs of reservist service during the "Iron Swords" war exceeded one-third of the total war expenses, as resources and equipment continue to be depleted in Israel's longest military campaign in history. The revised defense budget in March 2026 reached 143 billion shekels, compared to 68.5 billion before the war, marking an unprecedented increase in military spending. Reservist service is among the largest expenditure items, with costs surpassing 100 billion shekels since October 2023, and it is expected to reach 30 billion shekels in 2026. The ground forces are facing an increasing gap in repair and supply capabilities due to shortages of spare parts and delayed maintenance operations, amid the escalation of the global arms race which has driven up the costs of military equipment. Israel continues to support defense systems such as the THAAD missile system, with its unit cost estimated at around 20 million dollars per missile. The data emphasizes Israel's need for high future budgets to ensure readiness across multiple fronts, in light of the sector’s growing defense exports, which reached $19.2 billion in 2025 and have become a key driver of the Israeli economy.
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