Politics Israel's war budget: more money for the military
The Israeli government of Prime Minister Benjamin Netanyahu has approved the draft budget for 2025 with increased spending on the military and cuts in the areas of education, health and social welfare. The draft, which still has to be approved by parliament, envisages spending totaling 744 billion shekels (182 billion euros), as reported by the Israeli business newspaper "Calcalist". This includes 161 billion for debt servicing.
01.11.2024, 17:28
SDA
The military is to receive 117 billion shekels for its multi-front war, around 20 billion shekels more than in the current year. In addition to the savings, there is a bitter pill for all citizens in the form of an increase in VAT from 17 to 18 percent. This should close a budget gap of around 40 billion shekels, reported "Calcalist".
The target for the budget deficit was set at 4.3 percent of the gross national product. It currently stands at 8.5 percent. The war is putting a huge strain on Israel's economy. The growth forecast for 2024 has already had to be lowered from 1.1 percent to just 0.4 percent.
