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Bank of Israel Chief Warns War Against Hamas Will Cost $67 Billion in 2023-2025

The ongoing war with the Hamas terror group is slated to incur NIS 253 billion ($67 billion) in defense and civilian costs between the years 2023 and 2025, Bank of Israel Governor Amir Yaron warned on Thursday, May 30.

Speaking at a conference, Yaron cautioned that the security and civilian war costs were “significant” and presented a budgetary burden. In addition, the future security budget is expected to grow permanently and have a macroeconomic impact, he added.

“The government needs to make sure that it makes the right balances and budget adjustments in light of growing permanent security expenses,” he declared.

A breakdown of the latest war cost estimate showed that almost half of the war expenditure, or NIS 118 billion ($32 billion), will be needed to meet defense needs along with NIS 38 billion ($10 billion) for civilian spending until 2025, including the cost of evacuating civilians, providing housing for evacuees, and more.

The central bank anticipated another NIS 35 billion ($9 billion) in lost tax revenue due to the war and NIS 23 billion ($6 billion) to compensate for direct war damages. Another NIS 9 billion ($2.4 billion) in expected expenses were from interest payments as the government debt level increases and borrowing costs rise. (TOI / VFI News)

“Our Heavenly Father, we pray for financial stability and for the ability to have the funds to protect our people from terror. We know that You are our provider and we must not be anxious about such matters, since You always make a way for Your children. Like Yeshua said, You take care of the daily needs of even the birds who do not reap or store away in barns, and Your children are much more valuable to You than them, thus, we should not worry. Instead, we are humbly grateful for Your continual provisions and we thank You for being our constant source of peace and comfort.”