Tuesday, September 10, 2024

War hits Israel budget, widening deficit


September 9, 2024 


This picture taken on August 23, 2022 shows a view of the exterior of the headquarters of the Bank of Israel, the country’s central bank, in Kiryat Ben-Gurion in Jerusalem [AHMAD GHARABLI/AFP via Getty Images]

Israel’s budget deficit continues to feel the impact of the country’s ongoing deadly offensive on the Gaza Strip, with the budget deficit growing gradually this year, Anadolu Agency reports.

The budget deficit to the country’s GDP ratio was at minus 8.3 per cent in August, increasing from minus 7.6 per cent in June and minus 6.2 per cent in March and minus 4.1 per cent last December.

The budget deficit was at 84 billion shekels ($22.38 billion) this January to August, versus a surplus of 0.3 billion shekels ($79.9 million) in the same period last year.

While the country’s expenditures jumped 31.8 per cent year-on-year in the first eight months, revenues rose just 4 per cent, Israeli Finance Ministry data showed on Sunday.

In August alone, the budget deficit was at 12.1 billion shekels ($3.22 billion).

Israel’s offensive on Gaza, which has continued since an attack by Hamas last October, has resulted in nearly 41,000 Palestinian deaths, mostly women and children, according to local health authorities.

The attacks lasting nearly a year, which government opponents charge are meant to ensure the political survival of Prime Minister Benjamin Netanyahu, also require huge spending from the Israeli budget and hit the country’s economy.

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