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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 country's war with Hamas has increased expenses for military funding, victim support, and budget deficit. Prime Minister Benjamin Netanyahu aims to provide financial support, but this may raise the deficit and debt to GDP ratio. The war has also led to a reckoning for Prime Minister Netanyahu due to controversial handouts to ultra-orthodox schools and West Bank settlements. The funding has become a key political issue, with potential implications for Israel's governance capacity and credit rating.

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