NEW YORK, August 6. /TASS/. A potential full-scale occupation of the Gaza Strip by Israeli authorities would cost the state budget of Israel approximately 35 bln shekels (about $10 bln) per year, The Wall Street Journal (WSJ) reported, citing Esteban Klor, Professor of Economics at the Hebrew University of Jerusalem.
According to Klor’s estimates, the bulk of these expenditures would be directed toward maintaining the presence of Israel Defense Forces (IDF) personnel in Gaza, as well as financing the administrative apparatus and ensuring the continued functioning of civilian and municipal services. Altogether, this would amount to roughly 2% of Israel’s GDP. Klor noted that the current Israeli budget lacks the fiscal capacity to absorb such costs, and it would be impossible to mobilize the required funds in the short term. Moreover, these estimates do not account for the potentially massive expenses associated with rebuilding Gaza’s largely destroyed infrastructure.
Klor pointed out that an Israeli occupation of Gaza would entail responsibility for the day-to-day needs of the enclave’s population of 2 mln people. This would include providing food supplies to Palestinians, and maintaining healthcare, education, and other essential public services. From 1967 to 2005, Israel administered Gaza, with most expenditures at that time funded through tax revenues generated within the enclave. However, given the current collapse of Gaza’s economy, Klor considers the reestablishment of such a funding model highly unlikely.
Furthermore, he stated that the IDF would need to station a sizable military force in Gaza, given the predominantly hostile attitude of the local population toward Israel. From a purely military standpoint, however, an occupation would not pose a major challenge, as Israel already controls roughly 75% of the territory.
Earlier, the Ynet news portal, citing senior officials close to Israeli Prime Minister Benjamin Netanyahu, reported that the country’s political leadership is nearing a decision on the "full occupation" of the enclave. According to the report, the Israeli government believes negotiations with the radical Palestinian movement Hamas over the release of hostages have reached a deadlock, leaving no alternative to a military solution. However, Ynet noted that Israel’s military leadership has opposed such a move.