Israel to Boost Budget by $12.5 Billion for Iran and Gaza Wars

Israel will boost defense expenditure by 42 billion shekels ($12.5 billion) over the next two years to meet the costs of last month’s war with Iran and the ongoing conflict in Gaza.

The increase, announced by the Israeli finance and defense ministries in a joint statement on Thursday, is equivalent to roughly 2% of gross domestic product and underlines the fiscal impact of the country’s multi-front war since late 2023.