War-Driven Growth or Strategic Misstep? Israel’s $76 Billion Defense Burden
Reports indicate that Israel’s military spending since the onset of its war on Gaza in October 2023 has reached approximately $76.3 billion (250 billion shekels).
This figure was released by Israel’s Ministry of Finance. Officials from the ministry stated that the military’s mismanagement of reservist service days and poor financial oversight led to the loss of billions of shekels in payments to reserve forces. Finance Minister Bezalel Smotrich emphasized in a press conference that increasing the defense budget is essential for boosting Israel’s economic growth in the coming years.
The ministry’s report on the “misuse of reservist service days” and the resulting financial waste highlights not only the scale of expenditures but also the inefficiency in resource allocation and oversight. This managerial weakness reflects a deeper structural crisis within Israel’s military and administrative systems—a crisis that intensifies under wartime conditions.
Overall, Israel’s economy is shifting toward an unsustainable war-driven model. Heavy military spending, weakening of the private sector, and capital flight from the stock market and tech industries have increased the likelihood of recession and slowed real economic growth. If this trend continues, Israel’s economic structure could face a serious crisis in the coming years.
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