Israel’s public debt climbed to 68.6% of gross domestic product (GDP) in 2025, up from 67.7% in 2024, according to figures released on Sunday by the Israeli Ministry of Finance.
The increase reflects mounting fiscal pressures driven largely by elevated security spending following the war, alongside government efforts to rebuild and support Israeli society.
Israeli Finance Minister Bezalel Smotrich said the upward trend in the debt-to-GDP ratio was a direct result of what he described as “necessary security expenditures” in the aftermath of the conflict, as well as broader reconstruction and social support measures.
However, Smotrich noted that the impact of the war on the debt ratio is beginning to ease, signaling a gradual stabilization of public finances. He emphasized that the government remains committed to pursuing fiscal policies that strike a balance between strengthening national security and safeguarding long-term economic stability.
The latest figures highlight the fiscal challenges facing Israel as it navigates post-war recovery while seeking to contain rising debt levels amid ongoing regional uncertainty.
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