The updated state budget is about 584 billion Shekels (USD 162 billion) and reflects an increase of about 70 billion Shekels (USD 19.4 billion) in spending

The budget includes a significant addition to defense spending, both for the reimbursement of the fighting expenses and for the strengthening of the army, the protection of settlements near Gaza and security components for the settlements, extensive support for the mental health system, the budgeting of the Takuma administration for the reconstruction of the surrounding area, the evacuation of settlements and support in the acceleration of the high-tech industry and the real estate industry

The budget update anchors a projected deficit of about 6.6 per cent of GDP for 2024, and includes adjustments in the amount of about 20 billion Shekels (USD 5.6 billion) in 2024 and 2025

The government also approved several measures to increase state revenues: taxing bank profits as well as reducing the recovery day for salaried employees as part of an agreement with the Histadrut - Israel's national labor federation

Director General of the Ministry of Finance, Shlomi Heisler: "The updated budget for 2024 will enable the implementation of the war efforts, strengthening the resilience of the Israeli economy and will allow the reservists and reserve networks to be rewarded for their contribution to the security of the state"

The Israeli military said on Wednesday it plans to direct a significant portion of the 1.4 million displaced Palestinians living in the Gaza Strip's southernmost town of Rafah toward 'humanitarian islands' in the centre of the territory ahead of its planned offensive in the area

The fate of the people in Rafah has been a major area of concern of Israel's allies including the United States and humanitarian groups, worried an offensive in the region densely crowded with so many displaced people would be a catastrophe. Rafah is also Gaza's main entry point for desperately needed aid

Israeli Prime Minister Benjamin Netanyahu has said a Rafah offensive is crucial to achieve Israel's stated aim of destroying Hamas following the militants' October 7 attack in which about 1,200 people, mostly civilians, were killed and around 250 taken hostage and brought into Gaza

Israel's invasion of Gaza has killed more than 31,000, according to Gaza health officials, left much of the enclave in ruins and displaced some 80 per cent of Gaza's 2.3 million people