The Israeli occupation government has revealed shocking figures regarding the losses incurred during its genocidal war on Gaza. Total losses have amounted to $67 billion, including $34 billion in direct military expenses and $40 billion in the largest budget deficit in the occupation’s history.
Over 60,000 businesses closed their doors in the past year, a 50% increase compared to 2023. Meanwhile, the number of tourists dropped by 70%, causing losses exceeding $5 billion in the tourism sector. Additionally, the construction industry suffered losses of $4 billion, with over 70 companies in this sector shutting down.
The data also showed that a third of the Israeli population is now living below the poverty line, while a quarter of the population is suffering from food insecurity.
These figures were disclosed just hours before a ceasefire agreement in Gaza was reached, facilitated by direct intervention and pressure from U.S. President-elect Donald Trump.
Israel’s Ministry of Finance announced that the occupation had incurred financial losses of approximately 125 billion shekels ($34.09 billion) since the outbreak of war on Gaza on October 7, 2023. The ministry further clarified that Israel recorded a budget deficit of 19.2 billion shekels ($5.2 billion) in December alone, largely due to the high expenditures associated with funding the wars in Gaza and Lebanon.
It is worth noting that these figures represent the direct costs of the war, excluding broader economic and social repercussions that have impacted all aspects of life in the occupation.
In this context, the Israeli economic newspaper Calcalist estimated that the total cost of the war on Gaza could reach approximately 250 billion shekels ($67.57 billion) by the end of 2024. The newspaper based its estimates on data from the Bank of Israel, noting that this amount includes “direct security costs, significant civil expenses, and revenue losses.” However, the report emphasized that these figures do not account for all the financial aspects of the war.
Calcalist described the financial burden as “heavy” and reflective of “failure” in managing the war on Gaza. This, it argued, necessitates a “substantial increase in Israel’s defense budget over the next decade.”
The newspaper added that the future budget would need to cover the purchase of additional planes, helicopters, armored personnel carriers, and vast quantities of weapons and ammunition. It would also require significant investment in human resources, specifically the Israeli soldier.
The publication further highlighted that the Israeli army’s failure in Gaza was not limited to financial losses. It also included heavy human losses, with a rising number of casualties and injuries. The families of these injured soldiers are enduring significant psychological and emotional suffering as a result of the war.
The report noted that these figures and consequences come amidst ongoing discussions within Israel about the Defense and Security Budget Review Committee, commonly known as the “Nagel Committee,” named after its chairman, Yaakov Nagel.
On May 30, Calcalist published a report predicting that the total costs of the Gaza war could reach 250 billion shekels by 2025. The publication also suggested that revenue from natural gas exploitation in the Mediterranean, initially earmarked for health and education sectors, is likely to be redirected to the Israeli Ministry of Defense.
The Nagel Committee has recommended allocating an additional 275 billion shekels ($74 billion) to the defense budget over the next decade, amounting to an annual increase of 27.5 billion shekels ($7 billion).
The mounting economic toll and growing dissatisfaction within Israel highlight the extensive failures of its policies and military actions in Gaza. These consequences reflect the unsustainable cost of ongoing aggression and the deep divisions within Israeli society.
