Israel’s war on Gaza has become “more expensive … than first predicted”, putting a strain on Tel Aviv’s public finances, Bloomberg reported on Sunday.
The Israeli finance ministry announced plans to borrow 75 percent more in November than last month as it has already seen the war inflict an economic toll of almost $8 billion, the report said.
The Netanyahu regime, it added, is increasingly turning to bonds to pay for the Gaza onslaught.
Israel’s offensive against Gaza has sent shockwaves through its $488 billion economy and disrupted thousands of businesses in the occupied territories.
However, Netanyahu stated Israel will be paying “whatever economic price this war exacts on us”.
Israel’s budget deficit ballooned more than sevenfold from 3.1 billion shekels in October 2022 to 22.9 billion shekels this October.
The Israeli finance ministry cautioned that the “abnormal” deficit is due to a “significant” increase in expenses since October 7, when Israel waged the bloody war on Gaza after Hamas carried out a surprise operation against the occupying entity.
In the coming months, Israel is expected to spend billions of shekels in the payment of military reservists, and the evacuation of hundreds of thousands of settlers from the areas near the Gaza border and their relocation.
Last month, the shekel fell for its longest sustained period in 40 years to an 11-year low.
Since the start of the aggression, the Tel Aviv regime has killed at least 11,200 Palestinians in Gaza, mostly women and children, and injured about 28,200 others.
It has also imposed a “complete siege” on the coastal sliver, cutting off fuel, electricity, food and water to the more than two million Palestinians living there.