The Israeli Occupation government has increased its budget by nearly 12 billion Shekels (USD 3.2 billion) in April, reaching seven percent of the GDP. This surge in spending is mainly attributed to the ongoing aggression against the Gaza Strip, leading to a wider deficit and a decrease in tax revenues. The government’s expenses in the first four months of the year have already risen by 36 percent compared to the previous year, totaling 195.3 billion Shekels (USD 52 billion).
With the conflict in Gaza continuing for over 200 days, the estimated cost of military operations has reached 60 billion Shekels (USD 16 billion). This financial strain is affecting the economy and raising concerns about the sustainability of the budget in the long run.
As tensions in the region escalate, it’s crucial to monitor the economic impact of the conflict and ensure that resources are managed efficiently to address the growing financial challenges.