Sources inform ''Globes'' that tax receipts totaled NIS 18.3 billion in May 2012, NIS 500 million less than in May 2011. The sources added that the shortfall from the revised target widened to NIS 3 billion, half of which occurred in May.
The tax revenues target was revised downward in early 2012 to NIS 221 billion from the NIS 234 billion target set in late 2010 in the 2011-12 biennial budget.
The 2012 budget deficit target is NIS 18.4 billion (2% of GDP), although preliminary estimates project a deficit of at least NIS 30 billion (3.4% of GDP). The increase is due to lower tax receipts. Ministry of Finance officials said today that the deficit would likely be larger than 3.4% of GDP, and could reach 3.8%.
In an interview with "Globes" last week, Ministry of Finance director general Doron Cohen said that, as part of the solution, the ministry would increase the deficit target to 3% of GDP, amounting to an additional NIS 14 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on June 4, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012