If the Hamas jihadist terror organization is crushed by the Israel Defense Forces in Operation Cast Lead, it will be thanks to brave IDF fighters – and the taxpayers cheering them on at home.
The Finance Ministry will not discuss the costs of Operation Cast Lead, the mission whose name comes from an Israeli song about a Hanukkah spinning top/dreidel/sivivon, largely due to the impossibility of predicting the length of fighting. However, estimates range in the billions of shekels, with some Ministry sources estimating a price tag of NIS 700 million in the first week of the war.
Much of the money for the war may come from funds already set aside for such possibilities. Following the Second Lebanon War, the army demanded a standing budget increase of NIS 3 billion a year. It also demanded NIS 8 billion for refurnishing depleted military equipment and resources, and NIS 9.6 billion for preparing for the next war. A panel established by Prime Minister Ehud Olmert after the 2006 Second Lebanon War recommended that the army maintain a NIS 800 million reserve for use in expected conflicts.
The first six days of the war – in which the Israel Air Force conducted major airstrikes on key Hamas positions, may have cost more than NIS 1 billion. Now that a ground offensive is underway, the cost of reserve soldiers (NIS 450 per soldier per day, not including food), will be added to the tally.
One cost which is also difficult to ascertain is damage on the civilian front. Direct damage – such as damage from Hamas-fired rockets, and indirect damage – like losing days of work, will also take a toll on the war budget. The Tax Authority reported 300 claims of property damage in the first week of the war.
However, investors are not shying away from the Jewish State as it enters into battle with terrorist enemies. The benchmark TA-25 index climbed 8.1 percent since Dec. 27 when Israel began its campaign against Hamas in Gaza, according to Bloomberg business news. The TA Bank Index rose by 9.4 percent.
Israeli industries close to Gaza have not been deterred from continuing their work in the face of war, either. Nearly all Israeli factories within striking distance of Palestinian rockets remained open on Sunday, according to the Manufacturers Association trade group.
