In its report published yesterday (1404/10/16), Haaretz stated that the public debt of the Zionist regime has reached a record level of 120 percent of GDP. According to data from the Ministry of Finance, this figure represents a 10 percent increase compared to last year and is largely the result of high military expenditures.

In an official statement, the Ministry of Finance of the Zionist regime warned that the defense budget for 2026 could rise by 15 percent, exceeding 100 billion shekels. This increase has been attributed to ongoing military operations in Gaza and along the northern borders. Finance Minister Bezalel Smotrich emphasized during a press conference: “Security is the top priority, but budgetary balance must be maintained.”

Economists warn that this level of debt has placed the Zionist regime on the brink of a financial crisis. Avi Ben-Moshe, a senior analyst at the Bank of Israel, told Haaretz: “The debt-to-GDP ratio is higher than the average of OECD countries, and high interest rates are making it unsustainable.” In recent months, the government has issued new bonds worth 50 billion shekels to finance the budget deficit.

Social impacts are also becoming evident. Tax increases and cuts to subsidies have pushed inflation to 4.5 percent and reduced household purchasing power by 8 percent. Parliamentary opposition parties, led by Yair Lapid, have accused the government of “irresponsible mismanagement” and called for a reduction in military spending.

Meanwhile, the Central Bank of the Zionist regime has kept the interest rate unchanged at 4.5 percent but forecasts economic growth of only 1.8 percent in 2026. Haaretz quoted experts as saying that the likelihood of a credit rating downgrade by international agencies such as S&P remains high. Without structural reforms, public debt could rise to 140 percent of GDP by the end of the decade, potentially paralyzing the economy of the Zionist regime.