Israel budget deficit soars in October due to Gaza war expenses, revenue dip

Ground operation of the Israeli army against Hamas, in the Gaza Strip

Israeli military vehicles manoeuvre amid the ongoing ground operation of the Israeli army against the Palestinian Islamist group Hamas, in the Gaza Strip, in this handout image released by the Israel Defense Forces on November 8, 2023. Israel Defense Forces/Handout via

Source: X80001

Israel recorded a budget deficit of 22.9 billion shekels ($6 billion) in October, the Finance Ministry said on Wednesday, citing a spike in expenses to fund Israel's war with Hamas militants in the Gaza Strip.

As a percentage of GDP, the deficit over the prior 12 months rose to 2.6% in October from 1.5% in September, it said.

The ministry noted that revenue fell 15.2% last month due to tax deferments and lower social security income as a result of the war that began on Oct. 7.

Israel's deficit in September was 4.6 billion and in October 2022 it was 3.1 billion.

This article was produced by Reuters news agency. It has not been edited by Global South World.

By Reuters