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defense spending

Prime Minister Benjamin Netanyahu, leader of the Likud party, is surrounded by security personnel during a campaign appearance at a market in Tel Aviv, Israel, October 22, 2026, ahead of the country’s general election. (AP Photo/Ariel Schalit)
Top official: Even talking about this idea can harm economy
Netanyahu: Israel should ready for global sanctions, use blockchain to circumvent them
By ToI Staff
PM insists threatening economic outlook is result of developments that don't have to do with Israel, but rivals say his government's policies are to blame
Governor of the Bank of Israel Amir Yaron attends a Finance Committee meeting in the Knesset in Jerusalem on January 28, 2026. (Yonatan Sindel/Flash90)
October 21, 2026, 8:52 pm
Central bank holds rates days before election, warns next government on fiscal choices
Governor Yaron urges next coalition to cut debt and pursue growth reforms to fund security needs; bank raises forecasts but warns overseas production distorts domestic picture
By Sharon Wrobel
Prof. Zvi Eckstein, head of the Aaron Institute for Economic Policy at Reichman University and former deputy governor of the Bank of Israel. (Oren Shalev)
October 17, 2026, 12:32 pm
A top economist sees Israel’s fiscal future on the ballot as costs of war, division mount
Ahead of election, former central bank deputy governor Zvi Eckstein says outgoing government’s decisions have impacted country’s growth, with economy at risk unless changes are made
By Sharon Wrobel
A sign for credit agency Moody's, on August 13, 2010, in New York. (AP/ Mark Lennihan)
July 15, 2026, 5:06 pm
Moody’s lowers Israel’s growth outlook, cites heightened risk of conflict, ‘weakened institutions’
Rating agency maintains Israel’s credit rating but cautions about lingering economic fallout from defense spending and threats to judicial system
By Sharon Wrobel
The scene where a missile fired from Iran toward Israel caused damage to residential buildings in the southern city of Dimona, March 22, 2026. (Chaim Goldberg/ Flash90)
April 12, 2026, 10:54 pm
Iran war cost about NIS 35 billion in budgetary expenses, Finance Ministry says
During the 40-day campaign, Israel incurred an estimated NIS 22 billion in defense costs, according to an initial estimate
By Sharon Wrobel
IDF armored forces at a staging area in southern Israel near the border with Gaza. January 1, 2024. (Tomer Neuberg/FLASH90)
December 30, 2025, 5:40 pm
Mammoth defense spending at risk of overburdening Israel, report warns
Think tank cautions that welfare expenditures could suffer unless economy revs back up and state invests in infrastructure and human capital; cost of living still sky-high
By Sharon Wrobel
Finance Ministry Bezalel Smotrich holds a press conference at the Finance Ministry in Jerusalem on November 4, 2025. (Yonatan Sindel/Flash90)
November 4, 2025, 7:34 pm
Unveiling 2026 budget, Smotrich fumes at excessive defense spending, mulls tax cuts
Finance Ministry officials criticize the Defense Ministry for inefficient spending practices at the expense of welfare and education; Smotrich seeks to impose a new tax on banks
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
The home of Moody's credit rating agency, 250 Greenwich Street, New York, on Oct. 9, 2011. (AP/Henny Ray Abrams)
July 8, 2025, 2:45 pm
Moody’s keeps Israel outlook negative, citing defense costs, fragile Iran ceasefire
Global credit rating agency sees high geopolitical risks for Israel and raises concerns about the impact of elevated defense spending and weaker economic growth
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
Illustrative: Israelis shop at the Dizengoff Center shopping mall on Dizengoff Street in Tel Aviv, March 20, 2024. (Miriam Alster/FLASH90)
February 17, 2025, 6:47 pm
Israeli economy grew 1% as spending on war effort rose, exports and investment fell
Growth in 2024 exceeded central bank and Finance Ministry forecasts as government expenditure on war needs soared 13.7% and consumer spending rose 3.9%
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
Finance Minister Bezalel Smotrich in Jerusalem, April 21, 2024. (Chaim Goldberg/Flash90)
August 8, 2024, 7:07 pm
Fiscal deficit widens to 8.1% as state continues to shell out billions on war effort
Deficit climbs for fourth month above 2024 government budget ceiling of 6.6%, as spending on the war with Hamas reaches almost NIS 90 billion
By Sharon Wrobel
Israelis inspect a damaged residential building after it was hit by a rocket fired from the Gaza Strip, in Ashkelon, Israel, October 9, 2023. (Erik Marmor/AP)
December 26, 2023, 6:16 pm
War with Hamas to cost Israel at least NIS 50 billion in 2024, says Treasury
Finance Ministry forecasts that defense spending will have to increase by NIS 30 billion and another NIS 20 billion will need to be spent on civilian and other expenditure
By Sharon Wrobel
L-R: Finance Minister Bezalel Smotrich, President Isaac Herzog, Bank of Israel Governor Amir Yaron, Prime Minister Benjamin Netanyahu, as a ceremony marking the start of Yaron's second term, in Jerusalem, December 18, 2023. (GPO)
December 18, 2023, 4:58 pm
Central bank head urges lawmakers to avoid non-war spending with defense costs growing
Governor Amir Yaron calls for fiscal restraint as prime minister says Israel must bolster defense spending by at least NIS 20 billion a year amid Hamas war
By Sharon Wrobel
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