Zionist Media: Occupation of Gaza Costs $49 Billion Annually
The Israeli newspaper Yedioth Ahronoth reported that Prime Minister Benjamin Netanyahu is pursuing the occupation of the Gaza Strip, a move that could cost Tel Aviv between 120 to 180 billion shekels annually (approximately $32 to $49 billion). Simultaneously occurring, Israel’s Ministry of Finance has warned of a potential 7% budget deficit this year and further downgrades in the country’s credit rating.
According to Gad Lior, a journalist and economic analyst, financing this decision will require meaningful cuts to budgets for education, health, and social welfare programs and also new tax measures. this comes amid a growing budget shortfall for Israel.
Lior added that next year may begin without an approved budget and will likely operate under a continuing resolution, which would severely damage the economy.
Sources within israel’s Ministry of Finance estimate the daily cost of mobilizing 250,000 reserve soldiers and deploying military equipment at around 350 million shekels. This amounts to about 10-11 billion shekels monthly or between 30-50 billion shekels by the end of 2025. These expenses are in addition to estimated costs of 10-15 billion shekels per month for “administering Gaza” if occupied. There are also billions more projected for establishing refugee settlements and funding humanitarian aid-including food, water, medicine, and electricity-for gaza residents.
Experts from both the Ministry of Finance and the Bank of Israel predict this year’s budget deficit will reach at least around 7%, alongside increasing risks that major global credit rating agencies will further downgrade Israel’s sovereign rating.
The report concludes that Israelis must prepare for deeper austerity measures including new taxes, extended suspension on tax reductions, and severe cuts across education, healthcare, welfare services, and infrastructure budgets.
