Operation Pillar of Cloud doubled Israeli deficit

An Israeli economics magazine said on Sunday that the financial repercussions of Israel’s “Operation Pillar of Cloud” are such that the deficit in the government’s 2013 budget has been doubled. The government was unable to get the budget passed by the Knesset several months ago.

The magazine, linked to Haaretz newspaper, did not reveal any precise figures for the losses resulting from the military offensive, but did say that the direct and indirect losses for the Israeli government exceeded NIS4 billion (around £600 million). The losses, according to the magazine, would affect the income and expenditure of the government.

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According to Israeli law, the budget cannot be passed by the Knesset if there is excessive expenditure. As the current budget contains such a huge deficit, the government is now facing a massive challenge to finance its aggression against the people of Gaza.