The Israeli economic newspaper Calcalist reported on Sunday, citing preliminary figures from the Ministry of Finance, that the cost of the war that Israel is waging in the Gaza Strip will reach up to 200 billion shekels ($51 billion).

The newspaper said that the estimate of the costs, which is equivalent to 10 percent of the gross domestic product, is based on the possibility of the war continuing from 8 to 12 months, with the matter limited to Gaza without the full participation of Hezbollah, Iran, or Yemen, as well as on the basis of a quick return. About 350,000 Israelis who have been conscripted into the reserve forces will soon start working.

Calcalist added that half the cost will be in defense expenditures, which amount to about one billion shekels per day. The cost of revenue losses will range between another 40 and 60 billion shekels, in addition to between 17 and 20 billion shekels that Israel will incur in the form of compensation for companies, and from 10 to 20 billion shekels for rehabilitation.

Finance Minister Bezalel Smotrich had said earlier that the Israeli government was preparing an economic aid package for those affected by the Palestinian attacks, which would be “larger and broader” than it was during the “Covid-19” pandemic.

Prime Minister Benjamin Netanyahu said on Thursday that Israel was committed to helping all those affected.

He added: “My directives are clear... open the taps and direct the money to whoever needs it,” without mentioning numbers. He added: “Just like we did during the Covid crisis. In the past decade, we have built a very strong economy here, and even if the war imposes economic losses on us, as it does now, we will pay them without hesitation.

Following the outbreak of the war, Standard & Poor's lowered its expectations for Israel's rating to "negative," while Moody's and Fitch placed Israel's ratings under review for the possibility of a downgrade.