Israel's budget deficit has risen over the past 12 months by 7.6% of the GDP, reaching 146 billion shekels, or approximately 39.5 billion dollars, marking the highest level in two decades. The deficit is increasing amid the ongoing and costly war in the Gaza Strip, according to a report from the Israeli Ministry of Finance mentioned by Ynet on Monday. The financial report attributes this record budget deficit to "the large expenses of the ongoing war, payments being made to residents evacuated from border areas, and also compensation provided to halted companies."
The Israeli Finance Ministry expected the deficit to continue at growth rates at least until the end of the third quarter of this year, after which a decline is anticipated. The report indicated that government spending in June reached 51.2 billion shekels (13.8 billion dollars), a 30.9% increase compared to the same period last year. The report concluded that total government spending since the beginning of the current year has amounted to 300.3 billion shekels (81.3 billion dollars), compared to 223.7 billion shekels (60.6 billion dollars) for the same period in 2023.
