The “humanitarian city” in Gaza could cost the Israelis dearly, alert finance experts

The controversial project for the creation of a “humanitarian city” in the Gaza Strip, carried by the Israeli Ministers of Defense and Finance, could weigh heavily on Israeli public finances, according to officials from the Ministry of Finance.

Estimated at 15 billion shekels (around 3.8 billion euros) for the initial construction phase, the project would then require additional 10 billion shekels (2.5 billion euros) each year for its operation. Similarly, A sum that civil servants find it difficult to absorb by the national budget without drastic measures: increase in taxes. Consequently, reduction of health, education and social services budgets.

Presented as a solution to temporarily accommodate hundreds of thousands of displaced Gazaouis. the city would have complete infrastructure – roads, water and sewers, public lighting, hospital, schools – but without permanent dwellings. “It’s like building a new “humanitarian city” gaza could cost Israeli city, but without the houses,” said a government official.

However. this major project was only debated during two limited meetings of the firm and remains confidential in security and financial circles. If the ministers Betsalel Smotrich. Israel Katz are favorable, professionals from the Ministry of Finance oppose it, invoking the absence of a clear source of financing.

According to their estimates, the launch of the project before July would require an envelope of 25 billion shekels (6.4 billion euros) for the Ministry of Defense, in particular to mobilize tens of thousands of reservists. A surplus of tax revenue of 20 billion shekels this year could partially compensate for expenses. but the budget deficit should still exceed 5 %, or even reach 6 %, according to the IMF and other institutions.

Experts warn: if the government gives its green light. this project may force “humanitarian city” gaza could cost generalized budget cuts and increase tax pressure, affecting a population already weakened by the repercussions of war and pandemic.