Israel’s Budget Deficit Surpasses 8% of GDP in August Due to War Expenses

• Israel’s budget deficit in August climbed to 8.3% of GDP, driven by ongoing war expenditures against Hamas.
• The deficit reached 12.1 billion shekels (2.94 billion euros) for the month.
• The government’s target for the 2024 deficit was 6.6% of GDP, but expenses have far exceeded projections.

Jerusalem, 10 September (FinanceFlashNews) – Israel’s budget deficit surged to over 8% of GDP in August, as the government continues to fund its military campaign against Hamas in Gaza. According to Israel’s Ministry of Finance, the budget shortfall hit 12.1 billion shekels (2.94 billion euros) last month, bringing the deficit to 8.3% of GDP, up from 8% in July, 7.6% in June, and 7.2% in May.

The escalating deficit is attributed to the extensive military expenditures linked to the war in Gaza, which began after Hamas attacked Israel on October 7 of last year. Since the start of the conflict, war-related costs have amounted to approximately 97 billion shekels.

Israel’s Ministry of Finance indicated that the deficit will likely grow further in September before beginning to moderate later in the year. The government’s initial deficit target for 2024 was 6.6% of GDP, but current figures show Israel moving further from this goal.

For comparison, Israel’s budget deficit in 2023 was 4.2% of GDP.

Keywords: Israel budget, deficit, Hamas, war expenses, GDP