Israel is being pushed toward a dangerous debt path as the cost of its multi-front attacks and rising defence demands place heavy pressure on public finances, according to Israeli Ynetnews on Tuesday, the English-language news outlet of the Yedioth Ahronoth media group.
Ynetnews, citing an analysis by Calcalist, said Prime Minister Benjamin Netanyahu’s government is struggling to contain defence spending after October 7 2023 with a proposed $95 billion defence plan, while continuing military operations are raising concerns over higher debt and weakened fiscal stability.
The report said Netanyahu’s classified “Doctrine and Policy Guidelines for 2025-2026,” prepared in late 2025, reshaped the country’s security strategy by instructing the military to prepare for multiple arenas and scenarios.
The document effectively amounted to an open-ended procurement list, with Netanyahu reportedly approving every military demand, according to the analysis.
Defence officials estimated that the broadest interpretation of the policy sought by Netanyahu would cost about 800 billion shekels ($271 billion).
Two alternative plans were later presented to Netanyahu, one costing $152.6 billion and another $84.8 billion.
Following negotiations between the Finance and Defence ministries, a compromise was reached for $94.5 billion over a span of 10 years, the report said.
Part of the plan, including the purchase of two new air force squadrons, was approved Sunday by the ministerial procurement committee.
