'Israel's' fiscal deficit climbs to 8.1% amid rising war expenditures
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Public spending hit NIS 49.4 billion in July, with year-to-date expenses at NIS 350 billion, a 33% increase from 2023. War-related costs since October 7 have reached NIS 88.4 billion.
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Skyscrapers are seen lined in the Tel Aviv skyline during the dawn, occupied Palestine, Tuesday, Aug. 6, 2024 (AP Photo)
The Times of Israel reported on Thursday that the regime's fiscal deficit surged to 8.1% of GDP, or NIS 8.5 billion ($2.2 billion), over the past 12 months through July, driven by increased spending on the war on Gaza, according to the Israeli Finance Ministry.
This marks the fourth month the deficit has exceeded the 2024 target of 6.6%, up from 4.2% in 2023. Monthly deficits rose from 7% in April to 8.1% in July, amid escalating security-related and civilian expenditures.
Public spending hit NIS 49.4 billion in July, with year-to-date expenses at NIS 350 billion, a 33% increase from 2023. War-related costs since October 7 have reached NIS 88.4 billion.
Despite the deficit, public revenues in July were NIS 40.9 billion, up from NIS 39.1 billion last year. Total revenues for the year reached NIS 277.8 billion, a 3.1% increase from last year.
Economic turmoil
"Israel's" fiscal deficit has widened due to increased war-related spending, and the Israeli economy continues to suffer as a result.
On July 11, the Israeli Coface Bdi company reported that 46,000 Israeli businesses had closed since the beginning of the war.
On July 18, The Times of Israel reported that an estimated 60,000 are expected to shut down this year.
The situation is further strained by an impending Iranian retaliation on the regime, which has prompted many stakeholders to withdraw their investments.
On Monday, a report by Bloomberg detailed that Israeli stocks plunged the most since October, coupled with broader global market unease.
Read more: Israeli stocks plunge amid fears of Iran, Hezbollah threat
