Tel Aviv, Israel

Israel's finance ministry is apparently planning to increase defence spending by at least 30 billion shekels ($8.3 billion) next year amid the ongoing war against Hamas, Bloomberg reported. 

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In a document presented to parliament on Monday (Dec 25), the ministry said the overall budget for 2024 will probably have to total 562 billion shekels. 

The mentioned amount is more as compared to the 513 billion shekels spending plan, that was first approved last May. 

The ministry said an additional 10 billion shekels will be needed to cover the evacuation of around 1,20,000 people from Israel's northern and southern border areas. 

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It said that it needs higher budgets for police and other security services, and the reconstruction of settlements destroyed during Hamas's attack on October 7 in addition to the military spending. 

Also read: Egypt comes out with peace plan to end war, as Israel's Netanyahu hell-bent on destroying Hamas 

A report by the news agency Reuters, citing Israel's finance ministry, mentioned that the war will likely cost it at least another 50 billion shekels ($14 billion) in 2024. 

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While briefing lawmakers, the ministry's deputy budget commissioner Itai Temkin said the war was expected to stretch at least two months into 2024, which means until February. 

He informed the Knesset Finance Committee that this would increase total defence spending by more than 48 billion shekels above what had been budgeted. 

Total budgetary spending in 2024 would rise to 562.1 billion shekels from a planned 513.7 billion and lead to a budget deficit of 5.9% of gross domestic product, up from a target of 2.25%. 

Also read: Israel PM Benjamin Netanyahu says visited Gaza, vows to 'intensify' fighting 

He also it was not currently possible to plan for the possibility that the war against Gaza's Palestinian Hamas Islamists would stretch into March or beyond. 

As quoted by Reuters, he said: "It is possible that later in the year we will have to come and update it and we will have to come with updates as the war drags on." 

Parliament approved a special war budget of over 30 billion shekels for 2023 to assist support the war and compensate families affected by the October 7 cross-border Hamas strikes that triggered the war, as well as missiles launched from Gaza and Lebanon. 

Watch: Netanyahu bars Gallant from holding talks with Mossad Chief: Reports 

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Financial burden on citizens

Moshe Gafni, who is chairman of the finance committee, said he was opposed to raising income taxes. However, he also supported taxes on excess bank profits and measures to promote economic growth. 

Finance Minister Bezalel Smotrich later told reporters that he will work to avoid increasing the financial burden on citizens during the war and his main priority for 2024 is to assist reservists and their families. 

Smotrich said: "They left everything and risked their lives for all of us and we should do everything to reward them in the best possible way." 

Smotrich added that the finance and defence ministries were working on a "very large plan for the benefit of the reservists and their families". 

Disclaimer: WION takes utmost care to accurately and responsibly report ongoing developments on the Israel-Palestine conflict after the Hamas attacks. However, we cannot independently verify the authenticity of all statements, photos and videos.