According to the Finance Minister, two years of conflict have caused Israel's economy to suffer losses of $77 billion.

On the 4th local time, Israeli Finance Minister Smotrich announced the preliminary framework of the State budget for 2026, setting the deficit target at 3.2% of GDP. He emphasized the need for more efficient management of defense spending after two years of war led to a significant increase in defense expenditures. Smotrich pointed out that the ongoing conflict had already caused the Israeli economy to suffer losses of 250 billion new shekels, with 180 billion new shekels directly spent on defense and security. Against the backdrop of the ongoing conflict, the Israeli fiscal deficit reached 6.9% of GDP in 2024. By September of this year, the deficit had decreased to 4.7%. Smotrich pledged on the 4th to reduce taxes for the working population and promote reforms in the banking system.