(Al Jazeera Media Network) Israel’s parliamentary election campaign is in full swing, with politicians talking up their ability to defeat the country’s opponents across the region.
But the focus on war and the perceived existential threat to Israel from those opponents masks that few of the most prominent contenders in October’s election are discussing the astronomical cost of the country’s multiple conflicts, and how they plan to deal with it.
Israel’s central bank estimated in its 2025 report that 350 billion shekels ($118 billion) had been spent on wars in Gaza, Lebanon, Syria and elsewhere between 2023 and 2026, excluding the war on Iran that began in late February. In April, the Finance Ministry said that an extra 35 billion shekels ($11.8 billion) had been spent on that conflict.
Israel’s defence spending alone accounted for 249 billion shekels ($84 billion), according to the Bank of Israel’s report – and it is swallowing an ever-bigger share of the economy, almost doubling from 5.2 percent of gross domestic product (GDP) in 2023 to more than 8 percent in 2024.
That has all contributed to Israel’s national debt soaring. The Finance Ministry said it is around 1.4 trillion shekels ($480 billion), an increase from 1.07 trillion shekels ($365 billion) before October 2023.
“Unfortunately, there just isn’t any electoral benefit in talking about the economy,” said Yossi Mekelberg, an Associate Fellow at Chatham House. “It wouldn’t move even a couple of seats. There isn’t really much of an understanding of how debt works, or even the massive costs of servicing that debt. Instead, politicians assume voters are just far more interested in hearing the typical jingoism and deliver that.”
Israel’s debt has been swollen by the government’s military campaigns and is being repaid by a treasury under increasing strain.
