Globe: "Recruitment of reserves" The Israeli budget deficit increases and the economy weakens

2025/05/05 7:59:57 PM

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Globe: "Recruitment of reserves" The Israeli budget deficit increases and the economy weakens

The Israeli newspaper Globes warned in today’s report that the recruitment of thousands of reserve soldiers in preparation for the expansion of the military operation in the Gaza Strip will be exacerbated by the Israeli budget deficit and the economy is significantly weakened and creates a state of uncertainty. Difficult financial includes the possibility of increasing taxes or lowering civil spending in basic sectors such as health, education and social welfare. Currently in Gaza, in light of the failure to reach a new ceasefire agreement with Hamas. The newly approved army budget for 2025 relied on the hypothesis of a gradual decrease in the severity of military operations, a assumption that collapsed in light of the renewal of the war on Gaza. Only 3 billion shekels remain from the Israeli Army Fund. December. With the escalation of costs and resources decline, Israel is facing a sharp economic challenge in parallel with the continued military operations, according to the report.

& nbsp; It is still early on, and everyone is currently waiting for developments. However, the previous experiences in the relations between the Israeli army and the Ministry of Finance indicate that the financial assistance request is a matter of time, especially since the resumption of intense fighting is not the basis on which the budget of 2025, which was recently approved by the Knesset one month ago. The heavy burden is more than the budget of 2025..The second is the expansion of the financial deficit in a way that will increase the expenses of the Israeli debt service for years to come, during any military escalation, which will raise the country’s risk bonus more, with fear of further reducing its credit rating.

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