'Israel's' budget deficit could surge to 8%: Israeli media

By Al Mayadeen English
Source: Israeli media
10 Nov 2024 14:13
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Israeli media say the budget increase is due to delays in a portion of US aid, the expanded fighting in Lebanon, and a reduction in "Israel’s" credit rating.

Israeli Prime Minister Benjamin Netanyahu, right, speaks with Minister of Finance Bezalel Smotrich during the weekly cabinet meeting at the Defence Ministry in Tel Aviv, on January 7, 2024 (Pool via AP)

A worsening deficit in "Israel’s" 2024 state budget is anticipated, Israeli media reported on Sunday, attributing this to delays in receiving part of the US financial aid and the escalation of hostilities in southern Lebanon.

The Israel Broadcasting Authority indicated that the deficit in "Israel" may surge to 8% as the government considers increasing the budget by more than 33 billion shekels ($8.80 billion).

Sources cited by the authority indicated that the budget increase is due to delays in a portion of US aid, the expanded fighting in Lebanon, and a reduction in "Israel’s" credit rating.

Additionally, Israeli media revealed that the United States has “frozen” a large shipment of D9 bulldozers due to protests over their use in operations in the Gaza Strip.

They noted that the US' partial, quiet arms restriction is offset by other forms of assistance provided to "Israel".

Among the US aid offered is a major deal allowing "Israel" to purchase around 1,000 new wheeled armored personnel carriers, according to the media.

'Israel' 2025 budget focuses on funding genocidal wars, economy second

A couple of weeks ago, the Israeli occupation government, amid its ongoing war against Gaza and Lebanon, approved its 2025 budget, paving the way for increased military spending and tax hikes, the American news agency, Bloomberg, reported.

The agency noted that the 2025 budget, which focuses on further military spending, reflects a profound shift in priorities since the war began more than a year ago, adding that "defense expenditure at about 6% of GDP will reflect the new priorities of Israel."

It pointed out that this level of spending is "well above the figure of 4.2% in 2022 and the OECD average of 1.7%."

Bloomberg's report further explained that "the conflicts in Gaza and against Hezbollah in Lebanon, as well as heightened tensions with Iran, have weakened Israel’s economy and finances and forced Prime Minister Benjamin Netanyahu’s government to focus on reining in the budget deficit."

It added that the deficit target for the coming year has been set at 4.3% of GDP, with military spending expected to be the largest among all ministries, totaling 117 billion shekels, which is "similar to last year’s figure but 80% higher than the pre-war plan for 2024."

Bloomberg also recalled a statement from Netanyahu before discussing the budget, in which he said, "There is no economy without limits," adding that "if you give to one area, you need to take from another." He used this as a justification to continue funding the war while neglecting other aspects of the Israeli economy.