Israel’s budget deficit ceiling is expected to rise to 6.6% of gross domestic product in 2024 from 2.25%, according to an amended 2024 budget draft.
Ministers later on Sunday will begin debate on a revised budget that will include steep spending to finance Israel’s war with Palestinian militant group Hamas, with a vote expected by Monday morning.
According to the budget draft, the war with Hamas that began Oct. 7 will lower 2024 economic growth by 1.1 percentage points after an expected loss of 1.4 points in 2023.
The fiscal impact the war is estimated at 150 billion shekels ($40.25 billion) in 2023-24 assuming intense fighting ends in the first quarter.
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