War hits Israeli budget, widening deficit

By Gokhan Ergocun

ISTANBUL (AA) - Israel's budget deficit continues to feel the impact of the country’s ongoing deadly offensive on the Gaza Strip, with the budget deficit growing gradually this year.

The budget deficit to the country's GDP ratio was at minus 8.3% in August, increasing from minus 7.6% in June and minus 6.2% in March and minus 4.1% last December.

The budget deficit was at 84 billion shekels ($22.38 billion) this January to August, versus a surplus of 0.3 billion shekels ($79.9 million) in the same period last year.

While the country's expenditures jumped 31.8% year-on-year in the first eight months, revenues rose just 4%, Israeli Finance Ministry data showed on Sunday.

In August alone, the budget deficit was at 12.1 billion shekels ($3.22 billion).

Israel’s offensive on Gaza, which has continued since an attack by Hamas last October, has resulted in nearly 41,000 Palestinian deaths, mostly women and children, according to local health authorities.

The attacks lasting nearly a year, which government opponents charge are meant to ensure the political survival of Prime Minister Benjamin Netanyahu, also require huge spending from the Israeli budget and hit the country's economy.