Israel Grapples with Economic Fallout from Gaza War: Seeking New Revenue Sources
Watan-The Governor of the Israeli Central Bank, Amir Baron, acknowledged significant economic losses incurred by the occupation due to the brutal war against Gaza, indicating the government’s search for new sources of income to compensate for the budget.
Baron stated that the Israeli occupation government has begun adopting a financial policy aimed at curbing non-defense spending and compensating for any additional expansion in the military budget, concurrently with the continuation of the war and the expectation of an operation in Rafah.
The Israeli governor explained that the increase in the cost of the security aspect will require the Israeli government to search for new sources of income for the government or to reduce the level of services provided to the public, according to Haaretz’s report.
Israeli Economic Problems
A report from the Israeli Central Bank also mentioned challenges facing the economy, including “the increase in the number of reservists serving in the army in addition to the crisis of preventing the entry of Palestinian workers.”
Regarding this, Amir Baron said, “To determine the size of the defense budget in a thoughtful manner, a committee should be formed soon, with the participation of defense and civilian missions.”
Legislators approved this month the amended state budget for 2024, which added tens of billions of shekels to finance the war against Gaza as military operations approached six months.
The war on the Gaza Strip reached its 177th day, coinciding with the escalation of the occupation army’s attacks, resulting in the martyrdom of 82 Palestinians and the injury of 100 others in raids targeting cities in Gaza, Jabalia in the north, Deir al-Balah in the center, Rafah, and Khan Yunis in the south.
Fierce clashes are taking place between Palestinian resistance and occupation forces west of Gaza City and in the eastern areas of Khan Yunis, with the resistance confirming significant human and military losses inflicted on the Israeli army.
