Comptroller: State doesn't have enough cash for 'the day after' war

Report finds the amount in coffers would barely cover outcome of small-scale conflict, let alone all-out war with Iran

State Comptroller Joseph Shapira warned Wednesday that Israel’s fund for compensating citizens whose property is damaged by war is not large enough to deal with the extensive destruction expected in the wake of a major multi-front war, as Israel may face against Iran.

The fund has an allocation of 3-4 billion shekels ($750 million-plus) for compensation of private and public property, close to what was paid out for the damage caused by thousands of short- to medium-range Katyusha missiles during the 2006 Second Lebanon War, Channel 10 news reported.

In August outgoing civilian defense chief Matan Vilnai said the government had prepared for the possibility of hundreds of rockets and missiles falling on Israeli population centers each day should Israel face a war with Iran, with the expectation of 500 deaths and the “assessments are for a war that will last 30 days on a number of fronts.” Defense Minister Ehud Barak has also said the Israeli death toll could be in the range of 500 in such a conflict.

In contrast, the Second Lebanon War resulted in around a month of rocket and missile attack on the north and under 20 casualties.

Because the compensation fund currently stands at 3-4 billion shekels, Shapira doubts the country will have enough to pay out claimants in the aftermath of an all-out war, the report said.

The statement was part of a wide-ranging State Comptroller report that also tackled problems with Israel’s water and electric authorities and other government bodies.

The report censured the tax authority and Finance Ministry for not encouraging the public to insure belongings through the compensation fund. The insurance is reportedly a small amount but were the public to insure through the fund, the state’s financial resources would increase.

The public is able to insure up to NIS 727,854 worth of belongings through the fund at a cost of 0.3% of the difference of equivalently valued belongings of the same type and standard compensation payouts. The report said that the average family’s compensation was valued at NIS 122,860 and a premium costs NIS 1,815.

AP contributed to this report.