image sourced from original article at Israel allocated about NIS 91 billion in 2025 to military, defense, and civil expenditures related to the ongoing war, significantly increasing government borrowing and pushing the national debt higher. The Finance Ministry's accountant general reported that the public debt-to-gross domestic product ratio rose to 68.6% by the end of the year, up from 67.7% in 2024. Despite this increase, Israel's debt ratio remains lower than that of the euro bloc, the United States, and Japan, according to International Monetary Fund data.
The government budget deficit for 2025 reached 4.7% of gross domestic product, totaling around NIS 98.6 billion. Over the course of the conflict, from October 2023 to October 2025, Israel raised a total of NIS 524 billion in government debt. The accountant general emphasized the strong demand for Israeli debt as a sign of market confidence, while also noting the need for fiscal measures to reduce the debt ratio once conditions allow.
