Gov't posts NIS 2.8b monthly deficit

The government had a budget deficit of NIS 2.8 billion in February 2010, the Ministry of Finance Accountant General's Office announced today. This included a deficit of NIS 2.6 billion on financing activity including net credit.

The government had a budget deficit of NIS 2.5 billion for domestic activity and a deficit of NIS 300 million for overseas activity.

The government had a budget surplus of NIS 900 million in January-February, compared with a deficit of NIS 1.8 billion in the corresponding months of 2009.

The decline in the 12-month cumulative deficit continued in February, falling to NIS 36.2 billion.

As in January, spending by ministries in February was higher than in the corresponding month in recent years. The Ministry of Finance said, "We believe that this phenomenon can be attributed as another move to the first months of the 2010 fiscal year as a result of the two-year budget and to the bringing forward of surpluses from the 2009 budget."

Tax revenues rose to NIS 14.5 billion in February from NIS 13.5 billion in February 2009. Direct tax (income and company tax) revenues rose to NIS 7.6 billion from NIS 7.3 billion. Indirect taxes (VAT and customs) rose to NIS 6.6 billion in February from NIS 5.8 billion in February 2009.

Tax revenues rose to NIS 31.8 billion in January-February from NIS 27.7 billion in the corresponding months of last year.

Published by Globes [online], Israel business news - www.globes-online.com - on March 3, 2010

Gov't posts NIS 2.8b monthly deficit

However, so far this year the government has a NIS 900 million surplus, compared with a deficit in the corresponding months of last year.