Israel's War Costs Reach 230 Billion Shekels Since October 7
Ministry of Finance data reveals that the war since October 7, 2023, has cost Israel 230 billion shekels, amounting to about 79,000 shekels per household and heavily straining public finances.
Nearly three years have passed since the morning of October 7, 2023, with two additional campaigns against Iran unfolding in the interim. Since October 7, 2023, 7,165 family members have joined the circle of bereavement, bringing the total to nearly 60,000 people. Alongside them are tens of thousands of wounded, IDF disabled veterans, and victims of hostilities—a toll without a price tag.
The Direct Financial Cost
According to Ministry of Finance data, the war has cost the state approximately 230 billion shekels since October 7. This amount is equivalent to nearly two peacetime defense budgets or more than 10% of Israel's annual GDP. The heaviest item is the military. Defense establishment expenditures in 2025 totaled 166 billion shekels, representing 7.8% of GDP, compared to 75 billion shekels and 4.3% of GDP in 2022, on the eve of the war. Within this figure, 32 billion shekels went toward reserve duty days and 11 billion shekels to the Rehabilitation Department, two items that directly reflect the cost of sustaining the home front.
Those bearing the direct civilian damage have been compensated by the Property Tax Compensation Fund. Since the beginning of the war, more than 37 billion shekels have been paid out from the fund, leaving only about 2.8 billion shekels remaining in the coffer. Consequently, another round of combat will require a budgetary infusion or debt raising. The two campaigns against Iran alone left a bill of about 5 billion shekels in direct property damage and another 8 billion shekels in indirect damage, while the rehabilitation of the Gaza envelope stands at approximately 17 billion shekels expended or committed by the Tkuma Administration.
The Burden on Households
A simple calculation illustrates the scale: 230 billion shekels spread across approximately 2.9 million households in Israel amounts to about 79,000 shekels per household, exceeding half a year's average salary. Per capita, the bill stands at about 23,000 shekels for every citizen, including infants. This is money that was diverted from roads, hospitals, and classrooms, part of which will be financed by debt that these same families will pay interest on for years.
The data refer to expenditures made or recorded as commitments, excluding the blow to economic growth, the decline in foreign investments, or credit rating downgrades. Furthermore, future security commitments for upcoming years—such as missile procurement, fortification, and reserves—have not yet been included.
The 2027 state budget, which will come before the table of the next government following the elections, will have to determine who funds the gap: tax hikes, civilian spending cuts, or a deficit that will roll the bill further down the road.
