Israeli war spending in Gaza, Lebanon tops $30 billion in 2024 -Finance Ministry

Israel spent 112 billion shekels ($31 billion) on its military conflicts in Gaza and Lebanon in 2024, the Finance Ministry said in a report on Monday.

Between October 7, 2023 - when Palestinian militant group Hamas attacked Israel to trigger the war in Gaza and subsequent missile fire from Hezbollah in Lebanon - and the end of 2024 spending reached 141.6 billion shekels.

Israel has since forged ceasefire deals with Hamas and Hezbollah.

Total spending on defence in 2024 was 168.5 billion shekels, or 8.4% of gross domestic product, up from 98.1 billion in 2023, when defence costs were 5.2% of GDP, the report showed.

The increase in war spending pushed the budget deficit to 6.8% of GDP in 2024, a revision from a preliminary estimate of 6.9%. Israel's economy grew 0.9% in 2024.

Prior to war, in May 2023, Israeli lawmakers approved a 2024 budget of 513.7 billion shekels but the fighting required three additional budgets in 2024 that raised state spending by 21% to 620.6 billion shekels. Revenue last year was 484.9 billion shekels.

The deficit, which had topped 8% of GDP during 2024, has since eased and stood at 5.3% in February.

Due to political infighting, Israel has yet to approve a budget for 2025 and the country is using a prorated version of the base 2024 budget.

Failure for lawmakers to pass a budget by the end of March would trigger new elections. The budget draft of tax hikes and steep spending cuts will be approved on time, said Finance Minister Bezalel Smotrich.

The budget, he said, "reflects a responsible budget that will ensure stability and the continued proper functioning of the government while addressing Israel’s security needs during this period."

Accountant General Yali Rothenberg added: "It is crucial to reduce the deficit below 5% of GDP to stabilize government expenditures and the debt-to-GDP ratio."

($1 = 3.6576 shekels)