Join our Community
Support ToI and remove all ads
Learn more
×

budget deficit

Anti-missile batteries fire interception missiles toward incoming ballistic missiles launched from Iran, as seen over Tel Aviv, March 16, 2026. (Chaim Goldberg/Flash90)
March 17, 2026, 11:56 am
Knesset advances 5.1% deficit and spending hike amid Iran war
Bill seeks to raise deficit from 3.9%, increase spending cap by $10.2 billion, and add $2.2 billion war reserve as conflict with Iran, Hezbollah escalates
By Ariela Karmel
Illustrative: People shopping at the Azrieli mall in Tel Aviv, during the Municipal Elections, February 27, 2024. (Flash90)
December 2, 2025, 6:26 pm
OECD sees Israel economy rebound following Gaza ceasefire, but warns of risks
After ballooning war spending on defense and civilian needs, growth will be driven by exports and private demand, the organization says; raises concern about fiscal and tax policy
By Sharon Wrobel
Israeli troops stand outside Soroka Hospital in the southern city of Beersheba, after it was hit by a missile fired from Iran on June 19, 2025. (Marc Israel SELLEM / POOL / AFP)
July 9, 2025, 10:03 am
High defense spending set to threaten fiscal stability and welfare services – report
Taub Center paints worrying picture of healthcare system and welfare spending gaps, with funding for security needs soaring
By Sharon Wrobel
Former Bank of Israel governor Prof. Karnit Flug speaks at the Eli Huwitz Conference for Economy and Society, organized by the Israel Democracy Institute in Jerusalem, May 2024. (Oded Karni)
May 27, 2025, 3:59 am
War costs put Israel’s public services at risk of collapse, says former central bank head
Without policy shift, social welfare won’t meet needs of population; quality of life and economic growth will be harmed, says Karnit Flug, ahead of this week’s IDI conference
By Sharon Wrobel
The Tel Aviv Stock Exchange, December 25, 2018. (Adam Shuldman/Flash90/File)
March 20, 2025, 9:40 pm
Israeli shares drop as renewed Hamas, Houthi attacks fuel fears of prolonged fighting
Major indices slide as investors weigh threat of return to intense fighting and the effect of a prolonged war on the country’s finances and economy
By Sharon Wrobel
Founders of US-Israeli cyber unicorn Wiz from left to right: VP Product Yinon Costica, CEO Assaf Rappaport, CTO Ami Luttwak, and VP R&D Roy Reznik. (Avishag Shaar-Yashuv)
March 20, 2025, 11:32 am
From Waze to Wiz: How Google learned to love Israeli tech
The biggest buyout in the country’s history will make the unpretentious Wiz founders multibillionaires, while an estimated $4 billion in taxes is set to flow into national coffers
By Sharon Wrobel
A sign for credit agency Moody's, on August 13, 2010, in New York. (AP/ Mark Lennihan)
January 21, 2025, 1:14 pm
Moody’s: Durable Hamas ceasefire would fend off further Israel credit rating downgrades
Credit rating agency cites ‘domestic political challenges and security concerns’ as obstacles to a permanent ceasefire with Hamas in Gaza
By Sharon Wrobel
The Bank of Israel's main offices in Jerusalem, January 2, 2023. (Yonatan Sindel/ Flash90)
January 20, 2025, 10:52 pm
Bank of Israel calls for 2025 budget passage without changes to gain markets’ trust
But Finance Ministry says amendments may be needed in light of recommendations by the Nagel committee that examined defense expenditure in coming years
By Sharon Wrobel and Reuters
IDF troops operate at the Litani River in the eastern sector of southern Lebanon, in a handout image released on November 26, 2024. (Israel Defense Forces)
December 4, 2024, 11:59 pm
OECD cuts Israel growth forecast as costs of war expected to continue to mount
The Paris-based organization says risks remain high and urges the government to take fiscal action to bring the deficit down
By Sharon Wrobel
Prime Minister Benjamin Netanyahu meets with members of the Nagel Committee in Jerusalem on October 13, 2024 (Prime Minister's Office Spokesman)
November 11, 2024, 7:11 pm
Higher defense spending in coming years will take toll on citizens, Treasury warns
NIS 10 billion more spent annually on defense would cost the average household NIS 4,000 due to higher taxes and reduced public services, says Finance Ministry chief economist
By Sharon Wrobel
Prime Minister Benjamin Netanyahu, center, at the start of cabinet meeting meant to approve the 2025 state budget, October 31, 2024 (GPO)
November 3, 2024, 11:29 pm
Israel’s 2025 war budget squeezes disposable income of working-class households
Government drops plans to freeze welfare benefits and tax ‘advanced study’ funds, instead wants to raise National Insurance payments while barely cutting coalition funds
By Sharon Wrobel
Finance Minister Bezalel Smotrich speaks during a press conference at the Finance Ministry in Jerusalem, September 3, 2024. (Chaim Goldberg/Flash90)
October 15, 2024, 4:49 am
Treasury proposes to cut benefits, hike taxes for lowest earners to fund war
Arrangements Law also includes measures taxing advanced study fund and pension contributions; the ‘government is going to hit you in the savings,’ warns Liberman
By Sharon Wrobel and Sam Sokol
Illustrative: New Israeli shekel bills, September 24, 2023. (Hadar Youavian/ Flash90)
October 10, 2024, 6:14 pm
Fiscal deficit climbs to 8.5% as state continues to shell out for war effort
Deficit climbs for sixth month above 2024 government budget ceiling of 6.6%, as spending on the war with Hamas and intense fighting with Hezbollah tops NIS 103 billion
By Sharon Wrobel
Bank of Israel Governor Amir Yaron speaks during a press conference at the Bank of Israel in Jerusalem, January 2, 2023. (Yonatan Sindel/Flash90)
October 9, 2024, 8:13 pm
Central bank cuts growth prospects, holds rates as war expected to last into 2025
Bank of Israel Governor Amir Yaron urges the government to act on passing the 2025 budget with responsible austerity measures and policies to uphold the ‘economy’s robustness’
By Sharon Wrobel
Illustrative: The Tel Aviv Stock Exchange. (Courtesy)
October 7, 2024, 6:06 pm
A year of war saps Israel’s borrowing strength, while costs balloon
Foreign investors reduce holdings of local bonds, some raise concerns over Israeli assets, as the country grapples with rising cost of borrowing to finance high war spending
By Reuters and ToI Staff
Load More
Sign in or Join The Times of Israel Community
Paying ToI Community members are invited to comment on articles
Please use the following structure: example@domain.com
Or Continue with
By joining you agree to the terms and conditions
Register to continue
Or Continue with
Log in to continue
Sign in or Join The Times of Israel Community
Only ToI Community members can comment below articles
Forgot your password? / Send me a login link
Or Continue with
check your email
Check your email
We sent an email to you at .
It has a link that will sign you in.
Join The Times of Israel Community
Commenting is available for paying members of The Times of Israel Community only. Please join our Community to comment and enjoy other Community benefits.
Please use the following structure: example@domain.com
Confirm Mail
Thank you! Now check your email
You are now a member of The Times of Israel Community! We sent you an email with a login link to . Once you're set up, you can start enjoying Community benefits and commenting.
Back to top
Never miss breaking news on Israel
Get notifications to stay updated
You're subscribed
image
Register for free
and continue reading
Registering allows you to manage your newsletters and alerts and helps us improve your experience. It takes just a few seconds.
Already registered? Enter your email to sign in.
Please use the following structure: example@domain.com
Or Continue with
By registering you agree to the terms and conditions. Once registered, you’ll receive our Daily Edition email for free.
Register to continue
Or Continue with
Log in to continue
Sign in or Register
I forgot my password / Send me a sign in link
Or Continue with
check your email
Check your email
We sent an email to you at .
It has a link that will sign you in.