Occupied Quds - Saba:
The Zionist newspaper Haaretz revealed that the resumption of the war in Gaza Strip has caused a severe financial deficit in Israel’s budget, estimated between 15 and 25 billion shekels, amid warnings of a collapse in the financial projections on which this year’s budget was based.
In its Sunday edition, the newspaper reported that all the fundamental assumptions relied upon by the government in preparing the budget are no longer valid due to the ongoing war, leading to discussions about harsh options, including raising taxes, cutting social services, and increasing the financial deficit.
Haaretz attributed the deficit to the massive expenditures resulting from the mobilization of reserve forces, the extension of mandatory military service, the purchase of large quantities of ammunition and military equipment.
The newspaper noted that this deficit has raised growing concerns in political and economic circles about losing control over defense spending, amid the absence of clear plans to address the anticipated financial deterioration.
One government meeting reportedly witnessed a heated exchange of accusations between the Finance and Defense Ministries over responsibility for the widening deficit. Finance Minister Bezalel Smotrich attacked military officials, accusing them of acting "as they please" without coordination or consideration for the economic situation.
The report added that estimates suggest the deficit could worsen, reaching tens of billions of shekels if the war continues longer, threatening a deep economic crisis.
The Zionist newspaper Haaretz revealed that the resumption of the war in Gaza Strip has caused a severe financial deficit in Israel’s budget, estimated between 15 and 25 billion shekels, amid warnings of a collapse in the financial projections on which this year’s budget was based.
In its Sunday edition, the newspaper reported that all the fundamental assumptions relied upon by the government in preparing the budget are no longer valid due to the ongoing war, leading to discussions about harsh options, including raising taxes, cutting social services, and increasing the financial deficit.
Haaretz attributed the deficit to the massive expenditures resulting from the mobilization of reserve forces, the extension of mandatory military service, the purchase of large quantities of ammunition and military equipment.
The newspaper noted that this deficit has raised growing concerns in political and economic circles about losing control over defense spending, amid the absence of clear plans to address the anticipated financial deterioration.
One government meeting reportedly witnessed a heated exchange of accusations between the Finance and Defense Ministries over responsibility for the widening deficit. Finance Minister Bezalel Smotrich attacked military officials, accusing them of acting "as they please" without coordination or consideration for the economic situation.
The report added that estimates suggest the deficit could worsen, reaching tens of billions of shekels if the war continues longer, threatening a deep economic crisis.