# Historic High for Israel’s Government Debt in 2024
## Record Debt Figures
Israel’s government debt has soared to an unprecedented 1.329 trillion shekels in 2024, marking an increase of nearly 200 billion shekels compared to the previous year. This surge is largely attributed to the ongoing conflict and a recalibration of risk perception associated with Israel’s financial stability.
## Rising Interest Payments
The government has faced sharply increased interest obligations, paying out 50.2 billion shekels in 2024. This figure represents a substantial rise from the 44.7 billion shekels paid in the prior year. The growing cost of servicing the debt underscores the challenges faced by fiscal policymakers.
## Debt-to-GDP Ratio Increases
In 2024, the debt-to-GDP ratio leaped to 67.8%, prompting the government’s accountant general to call for urgent measures to reduce the budget deficit. This ratio reflects the escalating burden of national debt in the context of a volatile fiscal landscape.
## Implications for Fiscal Policy
The dramatic rise in debt and interest payments necessitates a reassessment of Israel’s fiscal strategy. Policymakers are now urged to consider reforms aimed at controlling the deficit and stabilizing national finances in the wake of external pressures.
As Israel navigates these challenging economic conditions, the implications of its rising debt will be closely monitored by both local and international stakeholders, with significant potential impacts on the nation’s economic health going forward