War on Lebanon Costs Israel $134 Million Daily

• CrossFireArabia
• October 21, 2024

Yedioth Ahronoth points out that a senior Israeli economic official says that enduring a long war in the north and south is hard on the Israeli economy. He noted the expansion of the war in the north has cost the Finance Ministry an extra $6.7 billion since the beginning of last September.

He added the expenses of one day of fighting in Lebanon amounts to around $134 million and may increase soon, pointing out the costs of ammunition used in Lebanon are very high.

The Israeli official stressed the expansion of the war requires an increase in the budget in light of the absence of funding sources according to Al Jazeera.

Recent data showed the growth of the Israeli economy continued to decline in the second quarter of this year, against the backdrop of the ongoing war waged by Israel on the Gaza Strip and its expansion into Lebanon.

The Israeli Central Bureau of Statistics stated that the gross domestic product rose by only 0.3% on an annual basis in the period from April to June, down from the 0.7% growth rate announced the previous month, and the 1.2% growth rate announced last August.

Ten days ago, the Israeli Finance Ministry announced that the budget deficit reached 8.8 billion shekels ($2.34 billion) in September, as the war on the Gaza Strip escalated and expanded to Lebanon and other fronts.

The deficit rose in the 12 months through September to 8.5% of GDP, from 8.3% in the 12 months through August.

The rise in the deficit to 8.5% comes from an increase in military and civilian spending to finance the war, and the deficit has risen for the sixth consecutive month above the annual target set by the government at 6.6%.

Worth noting in 2023, Israel’s budget deficit was at 4.2%, and it plans to reduce it to 4% next year is now out of reach.

Spending on the war, which began on 7 October, 2023, exceeded 103 billion shekels ($27.35 billion).