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Israel's War Spending Poses Financial Strain
Israeli military data reveals that the cost of reserve service during the "Iron Swords" war exceeded one-third of the total war expenses, amidst Israel's longest military campaign in its history and the significant depletion of equipment and resources accompanying it. The defense budget received an unprecedented increase, with the Knesset approving a budget of 143 billion shekels for 2026, up from approximately 68.5 billion before the war, with about 100 billion shekels allocated to reserve soldier salaries since the operation began in October 2023. Data indicates that the cost of reserve services, which continued for over 1,020 days, amounts to around 30 billion shekels in 2026, amid rising monthly salary costs and deteriorating maintenance and equipment capabilities due to a shortage of spare parts and increasing global demand for military equipment, especially in the context of the escalating international arms race. Furthermore, the military expects the need for high levels of operational funding to persist in the coming years, even as Israel’s defense industries are experiencing record growth in exports, which reached $19.2 billion in 2025.
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