Gov�t posted NIS 1.2b surplus in July

The government posted a surplus of NIS 1.2 billion in July 2007, thanks to higher than expected tax revenues. The surplus including net credit was NIS 1.6 billion. The surplus in domestic activity was NIS 800 million, and the surplus in foreign activity was NIS 400 million.

The government�s aggregate deficit continued to fall in July, mostly thanks to the increase in tax revenues. The aggregate deficit fell to NIS 3.1 billion for the past 12 months.

Budget performance has been in line with projections since January, indicating the budget performance for 2007 will be full. Preliminary estimates show budget performance of 55% since January, a high level given that government spending in the second half of the year will rise substantially.

Published by Globes [online], Israel business news - www.globes.co.il - on August 5, 2007