Israeli Defence Minister Moshe Yaalon said that the direct cost of the 50-day military offensive in the Gaza Strip was more than US$2.5 billion.
"The expenditure on Operation Protective Edge - military expenditure, the direct expenditure - is more than nine billion shekels," Yaalon told an economic conference in Tel Aviv on Tuesday.
"We attacked over 6,000 targets, more than 5,000 of them by the air force, about 900 from land and sea," he said referring to tank, artillery and naval fire.
But, despite the pounding, he acknowledged that the Gaza militants against whom the campaign was launched on July 8 still had a sizeable rocket arsenal left.
"The terror organisations in the Gaza Strip - Hamas, Islamic Jihad and others - had 10,000 rounds at the beginning of Operation Protective Edge," said Yaalon.
"Today they have about a fifth of that, but that's still 2,000 rounds," he said, adding that every interception of an incoming rocket by Israel's Iron Dome missile defence system cost US$100,000.
"From the economic point of view it's worth it, weighed against the potential damage" of a rocket strike, he said. "But it's still US$100,000 for every interception."
The military says that Iron Dome brought down 600 rockets during the campaign.
The government on Sunday approved swingeing budget cuts to help pay for the campaign in Gaza.
Ministers voted to cut 2 per cent from this year's budget for every government ministry - other than defence.
More than 2,100 Palestinians were killed in Israel's bombardment of the narrow coastal territory, nearly 70 per cent of them civilians.
Sixty-six Israeli soldiers were killed, as well as six civilians on the Israeli side.
The war ended with an open-ended ceasefire last Tuesday. The two sides are supposed to start Egyptian-mediated negotiations on a long-term truce, but no date has been set.