Israel To Raise Defence Budget By $13 Billion
Israel is preparing to expand its defence budget by nearly 40 billion shekels, or about $13 billion, as the government moves to finance the growing cost of its war with Iran. The proposed increase would amount to roughly 2% of Israel’s gross domestic product and reflects the scale of the country’s current military operations and wider wartime needs.
Israel Defence Budget Set For Major Increase
The proposed expansion would add a large new layer of wartime spending to Israel’s public finances. Reports said the increase is being discussed as a special budget measure to meet the immediate needs of the military campaign against Iran. The additional allocation is expected to cover operational costs, equipment, logistics, reserve mobilisation and broader defence preparedness linked to the conflict.
Iran War Drives Higher Military Spending
The war with Iran has sharply increased financial pressure on Israel, with military activity now extending beyond routine security operations. Since the conflict intensified, Israel has already faced rising costs linked to air operations, missile defence systems, emergency deployments and the economic effects of prolonged alert conditions. The latest proposed budget increase signals that officials expect the war’s burden to remain heavy in the near term.
Israeli Economy Faces Wartime Pressure
The budget move also highlights the wider economic consequences of the conflict. A defence increase of this size would place added strain on the national budget at a time when wartime disruptions are already affecting business activity, labour availability and public expenditure priorities. The government is expected to weigh how to fund the extra defence outlay while managing deficit concerns and preserving support for civilian sectors affected by the conflict.
