Haaretz reveals that the ongoing war on Gaza created a substantial budget deficit estimated between 15 and 25 billion shekels, invalidating the original financial plans for the year.

This deficit threatens to trigger tax hikes, cuts in social services, and a deeper fiscal imbalance. The strain results from reservist mobilization, extended mandatory service, and increased spending on ammunition.

Sources report escalating friction between the Finance and Defense ministries, with Finance Minister Bezalel Smotrich accusing military officials of acting without coordination during budget talks.

Projections warn the deficit could soar to tens of billions if the Gaza conflict persists

Al Akhbar