Fog of war dissipates: Finance Ministry puts total damages at NIS 23 billion
By Moti Bassok and Avi Bar-Eli

As the IDF moves deep into Lebanon, attempting to chalk up a few last achievements before the cease-fire takes effect, the Finance Ministry can finally estimate the economic damage. According to official estimates, the overall cost of the war today amounts to about NIS 23 billion. The direct budgetary impact of the war is NIS 12 billion - NIS 7 billion in defense spending and NIS 5 billion to cover direct and indirect damages.

The treasury estimates the war will result in at least 1.5 percent loss of gross domestic product, which translates into NIS 9 billion, including the loss of NIS 2 billion in tax revenues. In addition, the state will pay out NIS 2 billion in emergency aid to local governments in the north and to emergency services. A fraction of that - NIS 150 million - has already been distributed according to a series of criteria drafted by a committee headed by Interior Ministry director general Ram Belinkov.

This amount works out to about 5.1 billion dollars, and Hizballah was not defeated.