100 Billion Shekels Since October 7: Reserve Salary Costs Revealed
Since the outbreak of the Iron Swords war, the cost of reserve duty has exceeded 100 billion shekels. This accounts for more than a third of the total expenditure for the longest campaign in Israel's history.
The cost of reserve duty days since the outbreak of the Iron Swords war accounts for more than a third of the total war expenditure. These figures come from the security establishment, which, while managing the longest campaign in the country's history, is also fighting for its budget amid increasing operational wear and tear and a global arms race.
In March 2026, the Knesset approved a defense budget of 143 billion shekels. For comparison, before the war, the annual defense budget was approximately 68.5 billion shekels. The path to the current figure was complex: the security establishment initially requested 144 billion shekels, but following government adjustments, the amount was revised.
Reserve Service Costs
Reserve service, which has been ongoing for over 1,020 days, remains one of the heaviest expenditure components. At the peak of Operation Roar of the Lion, the number of mobilized reservists reached 145,000. According to the security establishment's economic formula, every 10,000 reservists cost the economy about five billion shekels per year. In fact, out of the 280 billion shekels spent on the war since October 7, 2023, about 100 billion were directed toward reserve salary payments.
Equipment Wear and Global Challenges
The prolonged campaign has taken a heavy toll on operational equipment. The rate of wear and tear exceeds the capacity for repairs and the supply of new parts. The situation is further complicated by a global arms race, as demand from Ukraine, NATO countries, and Taiwan has driven up procurement prices. Despite this, the strategic partnership with the US remains invaluable. According to foreign reports, the American THAAD battery stationed in Israel performed over 300 interceptions of ballistic missiles, representing direct defensive aid worth approximately six billion dollars.
Future Outlook and Exports
The security establishment warns that maintaining security zones in Lebanon, Gaza, and Syria will require an annual budget of 140–150 billion shekels in the coming years. However, there is a bright spot: in 2025, Israeli defense exports reached a record 19.2 billion dollars, highlighting the global demand for Israeli technology.
