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A handgun would most likely not be my first choice anyways since ammo is so expensive. A rifle or shotgun is definitely the way to go for now.
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I don't know about conditions in your neck of the woods, but around here 9mm goes for about 25 cents per round, .223/5.56 is 40 cents and up, and decent 12 ga shells are more like 50 cents each.
.22 lr as mentioned above is a great place to start in either rifle or handgun, and bulk pack ammo is about $20 per pack of 500. If you'd rather have something with a bit more kick then there's .22 WMR (.22 magnum). I think it goes for 10 to 20 cents per round.