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'Israel's' cost of war reached $42 billion as of mid-Jan: Ynet

  • By Al Mayadeen English
  • Source: Israeli media
  • 31 Jan 2025 19:41
  • 1 Shares
3 Min Read

According to Yedioth Ahronoth, the most significant security expenditure is the "funding of the reserve army," which amounts to 45 billion shekels (over $12 billion).

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    A house sits damaged in Metulla, "Israel's" northernmost settlement, on Wednesday, December 4, 2024. (AP)

As of mid-January 2025, the cost of the war for "Israel" has reached 150 billion shekels (approximately $42 billion), with an average daily expenditure of 300 million shekels (around $84 million), according to Israeli newspaper Yedioth Ahronoth.

The newspaper noted major discrepancies in the costs associated with "Israel's" military operations in Lebanon, the Gaza Strip, and the so-called "intensive combat days"—referring to efforts to counter Iranian missile attacks.

According to the report, the most significant security expenditure was the "funding of the reserve army," which amounts to 45 billion shekels (over $12 billion).

A senior source from "Israel’s" Ministry of Finance previously stated that the massive new budgets allocated for 2025 to rebuild settlements in the north and south remain "frozen".

Speaking to Yedioth Ahronoth, the source clarified that these budgets cannot be utilized until the government budget is officially approved.

The new website highlighted that the delay in approving the 2025 state budget is already causing severe damage to the Israeli economy.

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The main concern within the Ministry of Finance is that "Israel" will operate under a temporary budget for an entire quarter, meaning that funding for January, February, and March will be limited to one-twelfth of the original 2024 government budget for each month, according to Yedioth Ahoronoth.

However, the Accountant General at the Ministry of Finance has decided to allocate an even smaller budget, fearing the need to extend temporary funding for additional months and to create a financial reserve aimed at preventing disruptions to essential services for Israelis, the report pointed out.

In the same context, a senior economic government source also told Yedioth Ahronoth of a serious concern that the government budget may not be approved by the legal deadline of March 31.

"If that happens, it would be a disaster," the source warned, adding that the inability to manage government operations with the full required budget during wartime—amid a massive deficit and critical security tasks that cannot be carried out—will inflict severe harm on both "Israels" economy and security.

Economic toll of 'Israel’s' war on Gaza war exceeded $67bln: Report

In mid-January, Israeli business newspaper Calcalist highlighted that the economic impact of "Israel's" war on the Gaza Strip has reached approximately 250 billion shekels ($67.57 billion) by the end of 2024.

The report reflected estimates by the Bank of "Israel" and encompassed direct military expenditures, civilian spending, and revenue losses but did 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.

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