Israel spent about 100 billion shekels ($28 billion) on military conflicts in 2024, Reuters reported.
The figure sharply increased the country's government borrowing and debt burden.
The ratio of public debt to gross domestic product rose to 69% at the end of last year from 61.3% in 2023.
The ratio has risen by 9% in the past two years, largely due to Israel's wars against Palestinian armed groups Hamas in Gaza and Hezbollah in Lebanon. Ceasefire agreements have been reached in recent weeks.
When the Gaza war began in 2023, Israel's low debt-to-GDP ratio provided flexibility, allowing for financing to help displaced populations, businesses and reservists, Finance Minister Bezalel Smotrich said.
"The debt-to-GDP ratio in 2024 reflects the government's significant response to military needs, both on the security and civilian fronts," noted Accountant General Yali Rotenberg, adding that the country must return to a downward trajectory "as soon as possible."
Still, Israel's debt-to-GDP ratio remains lower than 88.1% in the EU, 121% in the United States and 251.2% in Japan, the ministry said, citing IMF data.
Total public debt rose to 1.33 trillion shekels last year from 1.13 trillion in 2023. Government spending in 2024 is 621 billion shekels, with 100 billion of that going to wars.
In 2024 The country raised 278 billion shekels - 79% through the Israeli bond market. Another 19% was raised through global bond issues and the rest through domestic non-marketable debt.
In March last year, Israel raised a record $8 billion in international offerings of 10- and 30-year bonds.
Since the start of the Gaza war, which began after Hamas attacked Israel on October 7, 2023, Israel has raised 360 billion shekels - 272 billion of which domestically and 83 billion globally.
The country raised 160 billion shekels in 2023. and 63 billion in 2022.
"The ability to raise debt on a large scale is a result of Israel's sophisticated and deep capital market, strong economy and stable financial system," Rotenberg pointed out.
Israel's budget deficit reached 6.9% in 2024 - its highest level since 2020, when it was 11.6% due to the COVID pandemic.
All three agencies downgraded Israel's credit rating in 2024.