War budget: Israel caught between markets and politics

The war between Israel and Hamas is costing the country's economy $260 million per day, leading to a strain on public finances. However, it is the controversial payouts to ultra-orthodox schools and other right-wing causes that have sparked a national debate. These handouts, known as "coalition funds," are part of Israel's expenditure program and have been criticized for suppressing economic growth. Despite Israeli assets recovering from the war, there is still an aura of risk surrounding the government's debt.

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