The budget deficit in August totaled NIS 2.6 billion, making the deficit over the past 12 months 2.2% of GDP. The 2016 budget allows a 2.9% deficit.
The figures for direct taxes from companies and self-employed persons were alarming. Gross receipts from self-employed people and companies totaled NIS 4.3 billion in August, down 12%, compared with August 2015. Most of the decrease was from companies, particularly financial companies, while receipts from the self-employed fell 2.9%.
Government spending (excluding repayment of principal on debt) totaled NIS 26.2 billion in August, consisting of NIS 23.5 billion in spending by government ministries and NIS 2.6 billion in interest on the government debt, plus NIS 200 million in payments of interest and principal to the National Insurance Institute.
Revenue from capital market taxes totaled NIS 195 million, down 25%, compared with August 2015. Revenue from tax on interest fell 11%, and taxes on profits from securities trading plummeted 32%.
Revenue from taxes on gasoline jumped 10% to NIS 1.5 billion in August, compared with NIS 1.4 billion in August 2015. Since the beginning of the year, state revenue from gasoline taxes totaled NIS 11.9 billion, compared with NIS 11.5 billion in the corresponding period last year.
Published by Globes [online], Israel business news - www.globes-online.com - on September 7, 2016
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