Israel's War Budget Challenges and Economic Costs

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.