Israel: Gaza war costed $34 billion

Shafaq News/ Israel's Ministry of Finance revealed on Monday that the country has incurred up to 125 billion shekels ($34.09 billion) in costs since the onset of the war in Gaza on October 7, 2023.

The ministry also reported a budget deficit of 19.2 billion shekels ($5.2 billion) in December, citing rising expenses to fund the wars with the Palestinian Islamist movement Hamas in Gaza and Hezbollah in Lebanon.

As a result of the two wars, the targeted deficit for the previous year reached 6.6%. For 2024, the deficit is projected to be 6.9% of GDP, compared to 4.2% in 2023.

Tax revenues increased by 27.6% in December and by 7.3% in 2024.

In August, Fitch Ratings downgraded Israel's credit rating from "A+" to "A," citing the escalating geopolitical risks amid the ongoing Gaza conflict.

Fitch maintained a negative outlook for Israel’s rating, signaling the possibility of another downgrade, according to Bloomberg.