According to recent reports, Israel is spending around $725 million per day on its ongoing conflicts—with Iran and Gaza included—equivalent to roughly ₹1,700 crore daily at current exchange rates
🔢 Breakdown of Daily Costs
- Missile Interceptor Spending
Advanced defense systems like David’s Sling and Arrow 3 cost $700K–$4M per interception - Fighter Jets & Munitions
Aircraft costs, fuel, bombs, and cruise missiles add tens of millions daily ($10K/hr per F‑35) - Reservist Mobilization
With hundreds of thousands called up, reserves cost roughly NIS 70–100 million/day (~₹140–200 crore) - Support & Infrastructure Costs
Includes civilian sheltering, evacuations, facility repairs, and humanitarian logistics
🏦 Broader Budgetary & Economic Impacts
- Annualized Expense & Deficit Pressure
Daily costs total nearly ₹62,000 crore/month. Defense spending rose over 65% in 2025, increasing budget deficits to ~6–7% of GDP reuters.com. - Economic Slowdown
War has shrunk Q4 GDP by ~5%, reduced consumer spending by ~27%, and blocked exports/imports (down 18–42%)
🔭 What This Means for Israel
- Domestic Pressure Intensifies
Businesses call for relief as taxes—like VAT—climb to finance the conflict. The average household may be shouldering ₹17,000/year in war-related taxes - Fiscal Sustainability Under Lens
Despite deep spending—$71B borrowed in 2024—economic growth is slowing. Israel’s debt-to-GDP remains around 60%, with strong reserves and U.S. support offering buffer. - Global Aid Keeps War Effort Alive
U.S. military assistance (~$22–$23 billion) is key to sustaining Israel’s strategy without immediate ruin - Long-Term Economic Strain
Bank of Israel warns war-related costs could hit $55–67 billion by 2025, accumulating lot-term economic impact
✅ Final Takeaway
With daily expenditures around ₹1,700 crore, Israel’s multi-front conflict is exacting a heavy toll—pressuring public finances, ramping up taxation, and slowing economic growth. While U.S. aid and reserves help offset immediate threats, extended warfare could significantly challenge the nation’s fiscal and socio-economic stability in the coming years.
