The economic cost of Israel’s war in Gaza has reached approximately 250 billion shekels ($67.57 billion) by the end of 2024, according to a report.
The Israeli business newspaper Calcalist published the figure on Friday, which reflects the estimates of the Bank of Israel and includes direct military expenses, civil expenditures, and income losses, but does not account for the full extent of the financial consequences.
The report describes the costs as a “heavy burden” and criticizes the “failure” of military efforts, emphasizing the need for a significant increase in Israel’s defense budget over the next decade.
The budgetary strain has sparked discussions within Israel, particularly about reallocating revenues from natural gas resources in the Mediterranean, which were initially earmarked for healthcare and education, but now seem to be directed towards defense spending.
The report also referenced a recent recommendation from the Nagel Committee, which suggested an additional 275 billion shekels ($74 billion) for defense over the next decade, with an annual increase of 27.5 billion shekels ($7 billion).
The Committee proposed strengthening Israel’s multi-layered air defense systems, including the Iron Dome and new operational laser systems, alongside fortifying the border in the Jordan Valley with a well-secured barrier.
