The Israeli government is weighing a series of spending cuts and canceling some tax benefits as officials try to cover the rapidly growing cost of the ongoing Operation Roaring Lion. Senior officials in the Finance Ministry are currently drafting a bill of economic measures to stabilize the budget as military expenditures continue to rise.

The proposals being discussed include reductions, cancellations, or postponements of several tax benefits that had previously been promised to the public. The goal is to offset the massive financial burden created by the war and prevent the state deficit from expanding too sharply. Among the cuts being considered are the cancellation of certain tax benefits for specific regions, including communities in Judea and Samaria and cities such as Ashkelon, as well as scrapping planned expansions of VAT exemptions on imported packages. Another proposal would halt the planned widening of income tax brackets that was scheduled to ease the burden on taxpayers.

Finance Minister Bezalel Smotrich has already warned that the war’s costs will likely require increasing Israel’s planned budget deficit.