Israel Faces Budget Challenges and Economic Impact in War with Hamas

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 military funding, business compensation, and victim support, leading to a budget deficit of 22.9 billion shekels in October. Prime Minister Benjamin Netanyahu aims to provide financial support, but this may raise the deficit and debt to GDP ratio. The war is also costing the economy around $260 million daily, leading to a reckoning for Prime Minister Benjamin Netanyahu due to controversial handouts to ultra-orthodox schools and West Bank settlements. The war with Hamas is proving to be costlier than initially estimated, leading to fiscal implications and budget pressures.