Gaza war costs Israel $67bn: Report

Israeli business newspaper Calcalist released the figure that reflects estimates by the Bank of Israel and includes direct military expenses, civilian expenditures, and revenue losses, but not the full extent of financial repercussions.

The report described the costs as a “heavy burden” and criticized the “failure” of the war effort, highlighting the need for substantial increases in Israel’s defense budget over the next decade.

The budgetary strain has sparked discussions within Israel, particularly on the reallocation of revenue from natural gas resources in the Mediterranean, which were originally intended for health care and education but now appears to be earmarked for defense spending.

The report also mentioned a recent recommendation from the Nagel Committee, which suggested an additional 275 billion shekels ($74 billion) for defense over the next decade with annual increases of 27.5 billion shekels ($7 billion).

The committee proposed bolstering Israel’s multi-layered air defense systems, including the Iron Dome and newly operational laser systems alongside fortifying the Jordan Valley border with a heavily secured barrier.

The Israeli army has killed over 46,000 people, mostly women and children, in Gaza since a cross-border incursion by Hamas in October 2023. The offensive has left the enclave in ruins and risk of famine is widespread.