Posted on 05/30/24
| News Source: i24
The ongoing war against the Hamas terror group is projected to cost Israel a staggering NIS 253 billion ($67 billion) between 2023 and 2025, Bank of Israel Governor Amir Yaron warned on Thursday.
Speaking at a conference, Yaron highlighted the significant financial burden posed by the conflict, affecting both defense 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 country'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 NIS 118 billion ($32 billion) allocated for defense needs and NIS 38 billion ($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 NIS 35 billion ($9 billion) in lost tax revenue due to the war, alongside NIS 23 billion ($6 billion) to compensate for direct war damages.