Both nations are suffering greatly as a result of the conflict between iran and Israel. However, money is being spent like water, especially in Israel.
Israel bears the largest portion of the war's costs, and the economy of the nation is beginning to suffer as a result. israel currently spends around USD 725 million (almost Rs. 6,300 crore) every day on military operations, according to Brigadier General (Res.) Reem Aminach, a former financial advisor to the Chief of Staff of the Israeli Defence Forces (IDF).
Over Rs. 12,000 crore spent in the first two days
Aminach revealed that israel spent over USD 1.45 billion, or more than Rs. 12,000 crore, in the first two days of the conflict alone, according to a report by Ynet News. This covers the price of both offensive and defensive actions. Over USD 500 million of money was utilized for purchasing jet fuel, conducting airstrikes, and other related activities. The remainder was used for defense preparations, troop mobilization, and missile interceptors.
War expenses could go even higher
The total cost of the aircraft and weaponry used in Israel's first significant attack on iran was around USD 593 million. Additionally, funds were allocated for the deployment of defense systems such as the iron Dome, which intercepts enemy missiles, and the mobilization of reserve soldiers.
This is only the direct cost of war, Aminach stressed. Indirect costs also exist, such as the effect on the national economy and productivity, which are now impossible to completely estimate. Only once losses to civilian property, business disruptions, and GDP decreases are taken into consideration will the true financial harm be recognized, he claimed.
Economic growth takes a hit
Israel's Finance Ministry has reduced its forecasts for the nation's economic expansion due to the war. The ministry had previously set a goal of a fiscal deficit of 4.9% this year, or around USD 27.6 billion. The majority of the funds had already been used during the Gaza War; however, some had been set aside for emergencies.
There is now no dedicated budget in place to deal with the new surge of expenses brought on by the situation in Iran. The ministry's prediction for GDP growth in 2025 has been lowered from 4.3% to 3.6%.
Defence systems under pressure
Israel is also experiencing a scarcity of missile interceptors, which are weaponry intended to take down enemy missiles, according to a Washington Post report. According to experts, israel might only have enough supplies to run its defensive system for ten to twelve more days if the united states doesn't intervene quickly.
For a nation that mainly depends on technology and air defense to safeguard its infrastructure and inhabitants, that is a concerning scenario. Global markets are currently being impacted by the ongoing confrontation between iran and israel, particularly the price of crude oil. Oil prices sharply increased after june 13 as tensions between the two countries increased. Crude oil prices surged from USD 64 USD 65 per barrel to around USD 74 USD 75 per barrel, according to rating agency ICRA.
Israel bears the largest portion of the war's costs, and the economy of the nation is beginning to suffer as a result. israel currently spends around USD 725 million (almost Rs. 6,300 crore) every day on military operations, according to Brigadier General (Res.) Reem Aminach, a former financial advisor to the Chief of Staff of the Israeli Defence Forces (IDF).
Over Rs. 12,000 crore spent in the first two days
Aminach revealed that israel spent over USD 1.45 billion, or more than Rs. 12,000 crore, in the first two days of the conflict alone, according to a report by Ynet News. This covers the price of both offensive and defensive actions. Over USD 500 million of money was utilized for purchasing jet fuel, conducting airstrikes, and other related activities. The remainder was used for defense preparations, troop mobilization, and missile interceptors.
War expenses could go even higher
The total cost of the aircraft and weaponry used in Israel's first significant attack on iran was around USD 593 million. Additionally, funds were allocated for the deployment of defense systems such as the iron Dome, which intercepts enemy missiles, and the mobilization of reserve soldiers.
This is only the direct cost of war, Aminach stressed. Indirect costs also exist, such as the effect on the national economy and productivity, which are now impossible to completely estimate. Only once losses to civilian property, business disruptions, and GDP decreases are taken into consideration will the true financial harm be recognized, he claimed.
Economic growth takes a hit
Israel's Finance Ministry has reduced its forecasts for the nation's economic expansion due to the war. The ministry had previously set a goal of a fiscal deficit of 4.9% this year, or around USD 27.6 billion. The majority of the funds had already been used during the Gaza War; however, some had been set aside for emergencies.
There is now no dedicated budget in place to deal with the new surge of expenses brought on by the situation in Iran. The ministry's prediction for GDP growth in 2025 has been lowered from 4.3% to 3.6%.
Defence systems under pressure
Israel is also experiencing a scarcity of missile interceptors, which are weaponry intended to take down enemy missiles, according to a Washington Post report. According to experts, israel might only have enough supplies to run its defensive system for ten to twelve more days if the united states doesn't intervene quickly.
For a nation that mainly depends on technology and air defense to safeguard its infrastructure and inhabitants, that is a concerning scenario. Global markets are currently being impacted by the ongoing confrontation between iran and israel, particularly the price of crude oil. Oil prices sharply increased after june 13 as tensions between the two countries increased. Crude oil prices surged from USD 64 USD 65 per barrel to around USD 74 USD 75 per barrel, according to rating agency ICRA.
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