JERUSALEM, Nov. 10 (Xinhua) -- Israel's budget deficit in October reached 15.3 billion shekels (around 4.7 billion U.S. dollars), up from 11.5 billion shekels in October last year, a year-on-year rise of 33 percent, according to a report issued by the state's Ministry of Finance on Monday.
Israel's cumulative 12-month deficit reached 102.5 billion shekels between November 2024 and October 2025, representing 4.9 percent of GDP, up from 98.6 billion shekels, or 4.7 percent of GDP, recorded in the previous 12 months.
Gad Lior, a senior analyst at the Israeli daily Yedioth Ahronoth, told Xinhua that the recent widening of the deficit is mainly due to a sharp increase in defense spending following the 12-day conflict between Israel and Iran in mid-June.
The additional expenditure includes rebuilding the army's operational capacity, producing new offensive and defensive missiles, and repairing damaged military infrastructure.
According to the ministry, the expenses of the multi-front conflict that erupted in October 2023 totaled 222.9 billion shekels at the end of October, of which 81.3 billion shekels were spent in the current year.
Of the total amount, 11.8 percent was compensation to residents for direct and indirect damages caused by the war.
