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Spending Rs 63000000000 per day in Israel-Iran war, this country spent its emergency fund over…, now facing massive shortage of…, the country is…
Spending Rs 63000000000 crore per day in Israel-Iran war, this country spent its emergency fund due to..., now facing massive shortage of..., the country is...
The war between Israel and Iran is turning out to be extremely costly for both countries. But Israel, in particular, is spending money like water. The biggest share of the war expenses is coming from Israel's side, and it is starting to hurt the country's economy. According to Brigadier General (Res.) Reem Aminach, who once served as the financial advisor to the Chief of Staff of the Israeli Defence Forces (IDF), said that Israel is now spending nearly USD 725 million (around Rs. 6,300 crore) every single day just on military operations. Over Rs. 12,000 crore spent in the first two days
As per a report by Ynet News, Aminach shared that in the first two days of the war alone, Israel spent around USD 1.45 billion, which is more than Rs. 12,000 crore. This includes the cost of both attacks and defense efforts.
Out of this, more than USD 500 million was used for carrying out airstrikes, buying jet fuel, and similar operations. The remaining amount was spent on missile interceptors, mobilizing soldiers, and other defense preparations. War expenses could go even higher
In Israel's first major attack on Iran, just the cost of aircraft and weapons used came to about USD 593 million. On top of that, money was also spent on calling up reserve forces and running defense systems like the Iron Dome that intercepts enemy missiles.
Aminach explained that this is only the direct cost of war. There are indirect costs too, like the impact on the economy and national productivity which cannot be fully calculated right now.
He said the real financial damage will only be known later, when losses to civilian property, disruptions in business, and declines in GDP are also taken into account. Economic growth takes a hit
Due to the war, Israel's Finance Ministry has lowered its expectations for the country's economic growth. Earlier, the ministry had set a target for a 4.9 per cent fiscal deficit this year which is roughly USD 27.6 billion. While some money was kept aside for emergencies, most of it was already spent during the war in Gaza.
Now, with the added cost of the Iran conflict, there is no separate fund in place to handle the new wave of expenses.
For 2025, the ministry has cut down its GDP growth forecast from 4.3 per cent to 3.6 per cent. Defence systems under pressure
According to a report by the Washington Post, Israel is also facing a shortage of missile interceptors, the weapons used to shoot down enemy missiles. Experts say that if the U.S. doesn't step in to help soon, Israel may only have enough supply to keep its defense system running for another 10 to 12 days.
That's a worrying situation for a country that is heavily relying on technology and air defense to protect its citizens and infrastructure.
The ongoing conflict between Israel and Iran is now affecting global markets, especially the price of crude oil. As tensions between the two nations rose after June 13, oil prices saw a sharp increase.
According to rating agency ICRA, crude oil prices jumped from USD 64–USD 65 per barrel to around USD 74–USD 75 per barrel. What it means for India
India imports most of its oil from abroad. So, even a small rise in prices can lead to big expenses for the country. If the average crude oil price increases by just USD 10 per barrel, India's oil import bill could go up by around USD 13–14 billion. That's a massive burden on the economy.
This could also increase India's Current Account Deficit (CAD) -the gap between what we spend and earn from foreign trade – by 0.3 per cent of GDP.
