The economic impact of “Israel’s” ongoing war on the Gaza Strip has reached approximately 250 billion shekels ($67.57 billion) by the end of 2024, according to a report from the Israeli business newspaper Calcalist as cited by Anadolu Agency.
The report, published on Friday, reflects estimates by the Bank of Israel and encompasses direct military expenditures, civilian spending, and revenue losses but does not account for the full scope of the war’s financial consequences.
Describing the costs as a “heavy burden”, the report criticized the war effort as a “failure” and emphasized the need for substantial increases in “Israel’s” defense budget over the next decade.
This financial strain has sparked internal debates in “Israel”, particularly concerning the reallocation of revenues from natural gas resources in the Mediterranean. Initially earmarked for healthcare and education, these funds now appear to be directed toward defense spending.
Additionally, the report highlighted recommendations from the Nagel Committee, which called for an additional 275 billion shekels ($74 billion) in defense funding over the next decade, with annual increases of 27.5 billion shekels ($7 billion).
The recommendations include enhancing “Israel’s” multi-layered air defense systems, such as the Iron Dome and newly deployed laser systems, as well as fortifying the Jordan Valley border with a heavily secured barrier.
Potential Israeli military control of Gaza to cost $7bln annually
In early December, the Israeli Broadcasting Authority reported that security and military sources have estimated the cost of imposing military control over the Gaza Strip at a minimum of 25 billion shekels annually, roughly $7 billion.
The estimates indicate that approximately 20 billion shekels (over $5 billion) would be required to fund military operations in Gaza, including the maintenance of four divisions, reservist service days, and other related expenses.
In addition, the cost of running the civil administration mechanism would amount to hundreds of millions of shekels per year, with an extra 5 to 10 billion shekels annually needed for the provision of “basic civil services to Gaza’s Palestinian population,” according to the broadcaster.
Previously, security officials estimated that the cost of “administering Gaza” would be 20 billion shekels annually, with 400 new positions added to the Israeli military.
According to the Broadcasting Authority, five divisions would “operate” regularly in Gaza, “overseeing” a population of 2.3 million Palestinians. The broadcaster noted that these budget estimates are primarily operational projections.