10/20/2024–|Last updated: 10/20/202406:58 PM (Mecca time)
The Israeli newspaper Yedioth Ahronoth quoted a senior Israeli economic official as saying that enduring a long war in the north and south is difficult for the Israeli economy, pointing out that the expansion of the war in the north has cost $6.7 billion since the beginning of last September.
He added that the expenses of one day of fighting in Lebanon amount to about 134 million dollars and may increase soon, noting that the costs of ammunition used in Lebanon are very high.
The Israeli official stressed that the expansion of the war requires increasing the budget in light of the absence of funding sources.
Recent data showed a continued decline in the growth of the Israeli economy during the second quarter of this year, against the backdrop of the continuation of the war launched by Israel on the Gaza Strip and its expansion into Lebanon.
The Central Bureau of Statistics stated that the gross domestic product rose by only 0.3% on an annual basis in the period from April to June last, down from a growth level of 0.7% announced in the previous month, and 1.2% announced in the previous month. Last August.
Budget deficit
Ten days ago, the Israeli Ministry of Finance announced that the budget deficit amounted to 8.8 billion shekels ($2.34 billion) last September, with the escalation of the war in the Gaza Strip and its expansion to Lebanon and other fronts.
The deficit rose in the past 12 months until last September to 8.5% of GDP, from 8.3% during the 12 months until the previous August, compared to the goal of 6.6% for the entire year 2024, which Finance Minister Bezalel Smotrich adheres to.
The increase in the deficit to 8.5% comes from the increase in military and civilian spending to finance the war, and the deficit rises for the sixth month in a row above the annual target set by the government at 6.6%.
It is noteworthy that in 2023, Israel’s budget deficit was at 4.2%, and it plans to reduce it to 4% next year, which seems to be far-fetched.
Spending on the war – which began on October 7, 2023 – exceeded 103 billion shekels ($27.35 billion).
