Israel's War Budget Faces Challenges and 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 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 is costing the economy around $260 million daily, causing a reckoning for Prime Minister Benjamin Netanyahu due to controversial handouts to ultra-orthodox schools and West Bank settlements. The war is expected to lower Israel's GDP growth by 1% in 2023 and 2024, causing the debt-to-GDP ratio to rise beyond 65% by the end of 2024.