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Israel Announces War Costs

A month of Hizballah rocket attacks resulted in over $1.3 billion in damage to the communities of northern Israel, according to the latest estimates published by the country`s treasury. The figures include damage to infrastructure, such as public buildings and homes, as well as lost income resulting from some one million residents closing businesses and fleeing the area or hiding in bomb shelters.

The declared amount was much higher than previous estimates, due to the Jerusalem`s inability to fully assess the continuing damage until Hizballah rockets had stopped raining down on northern Israel. According to Israeli newspapers, Israel`s Tax Authority has a compensation fund of only $800 million, meaning the treasury will have to come up with approximately $575 million to get the north back on its feet.

The Israeli Defense Ministry has requested an additional $1.6 billion in funding over the next two years, mostly as a result of the military`s apparent inability to more speedily deal with the full scope of the Hizballah threat. Earlier this week, the U.S. government signaled to Israel that Jerusalem should not ask for financial compensation from Washington for the war, as an aid package is set to be passed for Lebanon.