Israel defense spending doubles reaches 405 billion shekels

Israel’s defense spending has more than doubled since October 2023, reaching unprecedented levels and raising significant concerns about long-term economic strain and cuts to social services. According to figures from Bank of Israel Governor Amir Yaron, the total cost of military operations stemming from the conflict that began after the October 7, 2023, attack had reached approximately 405 billion shekels (about $138 billion) by late April 2026. An additional campaign against Iran alone reportedly added 35 billion shekels ($12 billion) in expenditure before a ceasefire took effect in April.

To finance these operations, the government has borrowed heavily on international markets. Public debt has risen from around 60 percent of gross domestic product before the war to more than 69 percent, according to treasury figures. Concurrently, citizens are facing higher taxes and increased social security contributions.

Economists warn that the rapid reallocation of resources toward defense is squeezing budgets for education, healthcare, infrastructure, and welfare programs. Esteban Klor, an economics professor at Hebrew University of Jerusalem, described Israelis as "paying twice" for...