229 out of 264 local authorities in Israel had deficits in 2003, 87%, compared with 186, 70%, in 2002, the Central Bureau of Statistics reported today.
196 local authorities reported that per capita real revenues in their regular budget had fallen. The steepest decline was 15.6% in Arad, and the steepest increase was 11.9% in Netanya. The local authorities’ aggregate revenue dropped 2.7% in real terms in 2003.
The local authorities own resources, consisting mostly of property taxes, made up 63% of their budgets in 2003. Wide gaps in this proportion existed between different local authorities, corresponding to their social and economic levels.
The lowest-rated local authorities in this aspect were at a low social and economic level, mostly in the non-Jewish sector. The proportion was highest in Tel Aviv-Jaffa, where the municipality’s revenue from its own resources property and other taxes totaled 86% of all its revenue, compared with only 21% in Kalansuwa.
Property tax collected by local authorities averaged NIS 1,754 in 2003, a 3.6% increase in real terms, compared with 2002. The average for municipalities was higher, at NIS 1,950, compared with NIS 1,847 by regional councils and NIS 778 by local councils. Property tax receipts were highest in Tel Aviv and Eilat, where commercial activity is most intense.
Per capita spending in the regular budget averaged NIS 5,181 in 2003. Tel Aviv was 32nd in this category with NIS 8,491 per capita. Spending on education by local authorities averaged NIS 5,640 per child nationwide.
Published by Globes [online] - www.globes.co.il - on July 31, 2005