Israel’s $16 Billion War Bill Puts Budget on Alarming Path
- Trailing fiscal shortfall increased to 7% of GDP in April
- Government covering the bulk of its needs by borrowing more
Israeli tanks near a border crossing to the southern Gaza strip, Israel, on May 5.
Photographer: Kobi Wolf/BloombergThis article is for subscribers only.
Israel has racked up a bill of 60 billion shekels ($16 billion) after seven months of war, leaving its budget deficit on a path to blow past this year’s target absent government action to stabilize finances.
Finance Ministry data published Thursday showed the 12-month trailing fiscal shortfall ballooned to 7% of gross domestic product as of April, higher than the government’s estimate of 6.6% for the full calendar year of 2024.