The offensive on Gaza City will cost Israel NIS 25 billion ($7.5 billion) by the end of 2025. This is equivalent to 1% of the country's GDP, Bloomberg writes, citing an unnamed representative of the Israeli authorities.
The total amount of money already spent on the nearly two-year war in Gaza and operations in Lebanon, Iran, Syria and Yemen exceeds 204 billion shekels.
The main expenses go to the salaries of reservists. Tens of thousands of Israelis have been mobilized since the beginning of the war, and their average earnings reach 36,000 shekels per month, 50% more than the national average. While serving in the army, reservists are compensated for the level of their regular salary.
The second largest area of expenditure is ammunition and missiles for air defense systems, which account for a quarter of all funding. The interception of a single ballistic missile costs from 15 to 30 million shekels, Director General of the Ministry of Defense Amir Baram said last week. According to him, this is only about 10% of the potential damage that a direct hit can cause in a densely populated area.
The Israeli government plans to increase the budget by 30 billion shekels to cover the costs of the war with Iran and previous actions in Gaza. The budget deficit will grow to 5.2%.
In addition to current expenses, Israel allocates about $49 billion for long-term purchases to strengthen its military capabilities. finance.liga.net.
