Once again the Ministry of Finance has been crying wolf and warning about government overspending. But the Ministry of Finance figures show that the budget deficit for 2014 totaled NIS 29.9 billion or 2.8% of GDP. This is well over NIS 1 billion less than the planned 2014 budget deficit of NIS 31.1 billion, despite an unplanned NIS 7 billion expenditure to cover the cost of fighting Operation Protective Edge.
The 2013 budget deficit was also less than the Ministry of Finance forecasts of 3.2%. In 2015 there is also likely to be a deficit below the target due to the upcoming elections, which is preventing a new budget from being passed.
The Ministry of Finance explained the 0.2% GDP deviation as being due to lower than planned expenditure, which was in part offset by lower than expected revenues.
Total government expenditure in 2014 amounted to NIS 312.8 billion, beneath the planned NIS 314.9 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 14, 2015
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