Israel spent about 100 billion shekels ($28 billion) on military conflicts in 2024, the finance ministry said, a figure that has sharply pushed up government borrowing and the country’s debt burden, Reuters reports.

The ratio of public debt to gross domestic product rose to 69 per cent at the end of last year, from 61.3pc in 2023.

The ratio has risen 9 percentage points over the past two years, largely due to Israel’s offensives against Hamas in Gaza and Hezbollah in Lebanon. Ceasefire deals have been made in recent weeks to end the fighting.

Entering the Gaza conflict in 2023, Israel’s low debt-to-GDP ratio provided flexibility, allowing funding to support displaced populations, businesses and reservists, Finance Minister Bezalel Smotrich said.

“The debt-to-GDP ratio in 2024 reflects the significant governmental response to war needs, both on the security and civilian fronts,” Accountant General Yali Rothenberg said, adding it must return to a declining trajectory “as soon as possible”.

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