The NIS 1.7 billion tax payment by the Wertheimer family's sale of the remaining 20% of Iscar Ltd. to Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A) resulted in a budget surplus of NIS 900 million in May 2013.
Despite the surplus in May, the budget deficit rose to NIS 6.8 billion in January-May 2013 from NIS 5.5 billion in the corresponding period of 2012. The deficit in the 12 months through May was NIS 40.2 billion, or 4.2% of GDP, down from the 4.5% of GDP in the 12 months through April.
Government expenditures totaled NIS 22.3 billion in May, including NIS 19.6 billion in spending by ministries and NIS 2.7 billion in interest payments. Expenditures were slightly higher in May than in April. Spending by ministries totaled NIS 90.5 billion in January-May, 4.1% more than in the corresponding period. Spending by civilian ministries rose by 6.4%, while defense spending fell 1.9%.
Tax revenues rose to NIS 21.6 billion in May from NIS 18.3 billion in May 2012, and rose to NIS 97.5 billion in January-May from NIS 93 billion in the corresponding period.
Published by Globes [online], Israel business news - www.globes-online.com - on June 6, 2013
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