The Israeli Ministry of Finance warns that the reserve budget for the war will soon run out.

Representatives from the Israeli Finance Ministry warned a meeting of the Knesset Finance Committee that the budget allocated for expanding the war on Gaza last March with a military operation dubbed "Operation Gideon" "will run out within weeks, and we must begin searching for solutions," according to the newspaper Israel Hayom on Wednesday.

The Ministry of Finance has allocated 10 billion shekels in the current year's state budget as a reserve budget to finance unexpected developments in the war.

The newspaper noted that, to date, NIS 4 billion has been deducted from this amount for the Israeli military, NIS 1.8 billion for the Ministry of National Security following Ben-Gvir's threats, and NIS 1.2 billion for extending the evacuation of residents of towns in the south and north of the country. This leaves NIS 3 billion to fund unforeseen developments in the war.

The Israeli government did not allocate a budget for Operation Gideon when it approved it, according to the newspaper. However, the Israeli military called up a large number of reserve soldiers, in addition to spending on ammunition purchases, which are expected to be financed from the reserve budget.

The newspaper quoted a source in the Ministry of Finance as saying, "We have financial resources left for several more weeks of fighting in its current form. If an agreement to free the kidnapped and a ceasefire is signed, we can hold out. But that has to happen now. If the government decides to continue the military operation, and especially if it decides to deepen it, we don't have enough money. The reserve budget will actually run out in just a few weeks, and then something has to be done."

The source added, "It seems we will have to reduce the coalition's funds. I don't see any other option unless the government has a different idea about the sources of funding for the deepening and continuation of the military operation. But we must realize that any sources other than coalition funds will directly harm services for citizens."

The source reported that the average cost per day for a reserve soldier is NIS 1,600, and that another problem is that the Ministry of Defense and the army have exceeded their allocated budget since the beginning of this year.

He added, "The Ministry of Defense and the Army committed to implementing consolidation steps (reducing spending), but unfortunately, they began with fraudulent steps such as delaying financial payments to entities that supply the Army's needs."

Another source told the newspaper that in this case, "Instead of Elbit Systems (which supplies the army with advanced electronics and weapons) receiving the money now, it will receive it next year from the next year's budget. And where will the money come from next year? Don't be surprised if it comes from a tax increase."

The newspaper quoted a senior economic source as saying that the continuation of the war, especially if it escalates further, will require a search for solutions. He added that there will be no solution in next year's budget, especially since the amount of debt repayments will rise next year to 80 billion shekels annually.