Treasury said to be shocked by cost of the war in Lebanon

Sources at the Ministry of Finance said last week thatthe damage caused by the recent war is now estimated at NIS 6 billion, a much higher number than first anticipated
 
The NIS 6 billion figure is far higher than any previous estimates made by the treasury's budget division and the Tax Authority.
 
Both the treasury's budget division and the Tax Authority made an original estimate of less than NIS 2 billion, this was later revised to a figure of less than NIS 3 billion.
 
According to the Ministry sources theNIS 6 billion figure includes, in addition to direct damages, such as to buildings, property and farms, also indirect damages, such as lost wages.
 
It is not clear yet why the initial cost estimate was lower compared to the actual. Sources at the treasury argue that the main reasons were: The duration of the war which surprised treasury officials, and only after the war officially ended the authorities and the residents were actually able to assess all the physical damage to property.
 
It was also made known last week that Government Ministers had been drawing up their additional budgetary requirements.
 
According to Ministry of Finance officials, the additional demands for budgets to finance costs incurred by the Lebanon war, total NIS 20-25 billion, 9% of the government budget and 4% of GDP.