Netanyahu’s Genocidal Aims May Spiral Israel into an ‘Unprecedented Budget Crisis’

By Jacob Weindling | August 4, 2025 | 2:45pm

DoD photo by U.S. Air Force Senior Airman Madelyn Keech

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Netanyahu’s Genocidal Aims May Spiral Israel into an ‘Unprecedented Budget Crisis’

“Senior official in Netanyahu’s office: The decision has been made — we’re going to occupy Gaza,” wrote Israel Channel 12’s chief political analyst Amit Segal. This marks another genocidal low in an endless line of them, as Benjamin Netanyahu and the Israeli government seek to erase millions of Palestinians by any means necessary. The problem that Netanyahu’s bloodlust may have run into is that occupying Gaza likely will prove disastrous for Israel’s budget, according to Israel.

Last year, Israeli daily Yedioth Ahronoth obtained a document written by the Israeli intelligence services which concluded that “Controlling Gaza means an unprecedented budget crisis” for Israel. They estimated it would cost $5.4 billion per year to occupy Gaza, about one percent of Israel’s annual GDP. While genocidal maniacs like Netanyahu may think one percent is no big deal, that’s 0.1 percent more than the Israeli economy grew in 2024.

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Israel is already in tenuous economic waters, as its credit rating was downgraded by all three major ratings agencies in 2024. This year’s finances are very tricky for the Israeli government due to its escalated attacks on Gaza which were not included in the fiscal year budget, therefore “the government will be left with the unpleasant options of raising taxes, cutting civilian spending and/or increasing the deficit” noted Haaretz. The Israeli government was already struggling to deal with the economic costs of its ethnic cleansing campaign in Gaza, and now they are adding another multi-billion-dollar annual expense to it.

An entire year’s worth of economic growth dedicated to occupying Gaza. This is the world Israel has consciously chose for itself. As much as many people wanted the Israeli cabinet drama last year to be about someone fighting to end the madness, it largely was about this plan that Netanyahu is now reportedly putting into place, not the genocide. Post-war Gaza was always at the heart of Netanyahu’s war cabinet fights that led to him sacking Defense Minister Yoav Gallant, and the fact that Bibi is still here and Gallant is not tells you which argument won out. Gallant’s rise and fall in power around this genocidal debate provides little reason to doubt the Israeli security service’s conclusion that a military occupation of Gaza will significantly harm the weakening Israeli economy, yet Netanyahu is doing it anyway, because that’s how important immiserating the Palestinian people is to him and his coalition.