Senior officials in Israel’s economic establishment estimate that the ongoing ground operation in Lebanon will cost the state several billion shekels, a development that may force the government to reopen the national budget and impose additional cuts on government ministries.

According to a report by Kan News, the updated defense budget approved only last week did not include funding for the ground maneuver in Lebanon. As a result, officials say new budget adjustments will likely be required in order to finance the expanded military activity.

Economic officials warn that the financial burden of the operation could reach billions of shekels. To cover those costs, the government may have no choice but to revise the state budget once again, a step that could lead to further reductions in civilian spending and services.

Just last Wednesday, the government approved reopening the state budget for the 2026 fiscal year. As part of that move, the defense budget was increased by approximately 40 billion shekels, while a sweeping reduction of about 3 percent was imposed across the budgets of various government ministries.

However, although the government announced the ground maneuver in Lebanon only a few days later, the anticipated costs of that military operation were not included in the most recent budget update.

Financial officials now believe that because the maneuver could ultimately cost several billion shekels, the government will likely need to reopen the budget once again, a decision that would almost certainly result in another round of cuts affecting government ministries.

The issue is also drawing sharp public criticism. Last week, even as ministries faced across-the-board budget reductions, the government distributed approximately six billion shekels in coalition funds, a move that has sparked backlash from critics who argue that the financial priorities are misplaced.

{Matzav.com}