Israel's fiscal deficit widened to 4.8% of GDP at the end of January 2024, the Ministry of Finance Accountant General has reported, up 0.6% from 4.2% at the end of December 2023. The fiscal deficit - the gap between government revenues and spending - stood at NIS 89.1 billion in the 12 months prior to the end of January.
The Accountant General reports that government spending in January totaled NIS 41.2 billion, up 36% from January 2021. Without spending related to the war, government spending would only have risen by 14.6%. At the same time government revenues are also declining. In January 2024 government revenues amounted to NIS 43.7 billion, down from NIS 44 billion in January 2023.
The Accountant General says that the growing deficit will be financed in three main ways: raising debt locally, raising debt abroad, and selling state assets. So far Israel has raised NIS 19 billion, four times the amount raised abroad NIS 5.4 billion.
Last night the Knesset passed the first reading of the revised 2024 state budget which allows for a 6.6% fiscal deficit.
Published by Globes, Israel business news - en.globes.co.il - on February 8, 2024.
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