Israel plans $60 Billion debt raise, freezes hiring as operation in Rafah intensifies; focus shifts on Hamas

In a bold fiscal decision, Israel has an ambitious plan to secure $60 billion in debt this year, coupled with stringent measures such as a government hiring freeze and tax hikes. The nation's defense budget is set for an unprecedented nearly twofold increase, signaling a strategic financial shift in the ongoing war.

The Israeli government has signaled its next plans after taking multiple measures for the economy as well as the defense of the country. Israel saw a 2.6 percent growth in 2023 after the war against Hamas took up a big chunk of resources from the state coffers. The government is planning to inject additional cash into the state to further the war against Hamas.

According to the Financial Times, Israel plans a $60 Billion debt raise to help the economy and defense purchases. It has also blocked government hiring and increased taxes to funnel more money into the state coffers. In view of the October 7 attack, the Middle Eastern nation has also decided to double its military spending.

The government in Jerusalem is confident of an economic bounce back as the spending has started to rise again after a slow movement in the last few months. Israel through the $60 billion raise is planning to use more on military and intelligence. It is confident about the economic recovery and is expected to funnel a minimum of the rising figure into the economy.

The Middle Eastern nation has vowed to finish Hamas and has now moved its military into Rafah which is a Palestinian city located near the Egypt border. The city now houses a massive population of Gazans who decided to flee from Gaza after the IDF began its operations against Hamas.

Israel believes that a large chunk of Hamas leaders have run towards Rafah for protection from the IDF. Israeli intelligence has reported that Rafah now houses many Hamas members due to which Israel has begun operations in the highly populated city. The raising of $60 billion will help in the procurement of weapons and defense spending.