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Israel's War Budget Challenges and Economic Costs
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Overview
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Israel faces challenges in managing its expenditures during the war, with concerns about the impact on the market and government spending cuts. The war with Hamas has led to a budget deficit and debt-to-GDP ratio that may worsen. Prime Minister Benjamin Netanyahu aims to provide financial support but faces criticism for controversial handouts to ultra-orthodox schools and settlements. The war is also costing the economy around $260 million daily, leading to concerns about economic growth and the government's debt. Bank of Israel Governor Amir Yaron warns of the costlier-than-estimated nature of the war and its fiscal implications.
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How can Israel effectively manage its expenditures during the war?
What are the potential consequences of the budget deficit and debt-to-GDP ratio?
What measures can be taken to address the controversy surrounding financial support for ultra-orthodox schools and settlements?
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