Israel’s fiscal deficit for the 12 months until the end of October 2026 was 3.3% of GDP, Ministry of Finance Accountant General Michal Abadi-Boiangiu reported today.
The monthly deficit was about NIS 18.3 billion, compared with a deficit of about NIS 15.2 billion in October 2025. The cumulative deficit over the last 12 months rose 0.1% from 3.2% at the end of September.
State revenues for October were NIS 46.2 billion. Since the beginning of the year, revenues have amounted to NIS 503.3 billion, compared with NIS 457.6 billion during corresponding period last year - up 10%.
Government spending in October stood was NIS 64.5 billion. Since the beginning of the year, spending has totaled about NIS 551.1 billion, compared with NIS 529.1 billion during the corresponding period last year up 4.2%.
The deficit for the last 12 months was NIS 74 billion. Once again, the sharpest increase in spending this month occurred was by the Ministry of Defense - up 9.9% compared with the corresponding period last year, while the state budget had projected an increase of 2.7%. Meanwhile, the economic ministries underspent (at -2.8%), contrary to the projected 12% increase. State tax revenues in October were NIS 44 billion. This figure includes several payments that were deferred from September due to the holidays.
Another notable difference compared with October 2025 is that while 100% of purchase tax revenue was allocated to the Compensation Fund in 2025, this year the allocation stands at 25%. From January through October, state tax revenues rose 8% in real terms compared with the same period last year. Revenues from direct taxes increased by 11%, indirect tax revenues rose 4%, and revenue from fees rose 10%.
Published by Globes, Israel business news - en.globes.co.il - on November 9, 2026.
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