Article

The Israel Defense Forces (IDF), formed in 1948, significantly influence Israel's economy and policy. The defense budget for 2024 is set at $46.5 billion, a 65% increase from 2023, constituting about 8.8% of GDP.

By 2026, the budget may reach approximately 112 billion shekels ($34-35 billion), accounting for immediate defense needs and long-term modernization. Military spending supports a thriving high-tech sector, fostering innovations applicable in civilian industries.

However, substantial defense expenditures limit funds for social programs and infrastructure. The IDF is seen as a key component of Israel's stability and economic growth.