Untimely Debt: Interest Costs Loom Ever Larger for Israel

Repaying government debt comes at the expense of defense, education, health and other crucial items, and its share of the budget is due to rise in the coming years.

The third-largest line item in the state budget − after defense and education − is interest payments on the national debt. All this spending on interest does nothing to enhance security, develop infrastructure or narrow socioeconomic gaps, yet it isn’t even on the radar of most cabinet members, Knesset members or the public.