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OverviewAPI
Israel faces challenges in managing its expenditures during the war, with concerns about the impact on the market and government spending cuts. The war has increased expenses for the military, compensation, and slowed tax income, leading to a budget deficit. Prime Minister Benjamin Netanyahu aims to provide financial support, but this may raise the deficit and debt to GDP ratio. The war with Hamas is costing the economy around $260 million daily, drawing criticism for controversial handouts to ultra-orthodox schools and West Bank settlements. The central bank warns of potential rating cuts if debt metrics worsen.

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