The budget deficit rose nine-fold to NIS 4.3 billion in March 2012 from NIS 400 million in March 2011, the Ministry of Finance reported today. The budget deficit was NIS 1 billion in the first quarter compared with NIS 1.1 billion in the corresponding quarter.
The budget deficit for the 12 months through March rose 14% to NIS 31 billion. Although the budget deficit is set at NIS 18.4 billion for 2012 - 2% of GDP - the estimated NIS 11.4 billion shortfall in revenues, means that the actual deficit is likely to be double the target.
Tax revenues fell to NSI 17.8 billion in March from NIS 18.8 billion in March 2011. Direct tax revenues fell to NIS 8.3 billion, and indirect tax revenues fell to NIS 8.3 billion from NIS 9.1 billion in the corresponding month. As in the preceding months, tax refunds were fairly high.
The Israel Tax Authority says that tax revenues in the first quarter were NIS 1.6 billion short of the target.
Most of the drop in tax revenues was in VAT on domestic production, purchase taxes on imports due to lower car sales, a 29% drop in real estate taxes and a 15% drop in capital gains taxes.
Published by Globes [online], Israel business news - www.globes-online.com - on April 4, 2012
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