War on Gaza To Cost “Israel” $67 billion By 2025

By Staff, Agencies

Bank of “Israel” Governor Amir Yaron warned that the ongoing war against Gaza is projected to cost “Israel” a staggering “NIS 253” billion [$67 billion] between 2023 and 2025.

Speaking at a conference, Yaron highlighted the significant financial burden posed by the conflict, affecting both military and “civilian” sectors.

Yaron emphasized that “the security and civilian costs of the war are substantial and present a significant budgetary challenge.”

He noted that the future security budget is expected to increase permanently, impacting the entity’s macroeconomic stability.

“The government needs to make sure that it makes the right balances and budget adjustments in light of growing permanent security expenses,” Yaron stated.

The estimated war cost includes $32 billion allocated for military needs and $10 billion for “civilian” spending through 2025. This civilian spending covers the cost of evacuating civilians, providing housing for evacuees, and related expenses. The central bank also anticipates $9 billion in lost tax revenue due to the war, alongside $ 6 billion to compensate for direct war damages.

Additionally, Yaron pointed out that the increasing government debt level and borrowing costs are expected to result in $2.4 billion in interest payments.

In response to these concerns, the entity’s Finance Minister Bezalel Smotrich and War Minister Yoav Gallant have agreed to establish a panel to review military spending.