Israel's fiscal deficit continues to narrow

Tax collection from real estate and the capital market rose sharply in March.

The budget deficit continues to narrow. The Ministry of Finance announced today that the deficit on government activity fell to NIS 2.5 billion in March 2014 from NIS 2.9 billion in March 2013. There was a budget surplus of NIS 100 million in the first quarter, compared with a deficit of NIS 4.7 billion in the corresponding quarter.

The cumulative 12-month deficit is falling: it totaled NIS 28.2 billion in the 12 months through March, or 2.65% of GDP, down from 3.15% of GDP in December 2013, 3% in January, and 2.7% in February.

Tax revenues totaled NIS 21.7 billion in March and NIS 66.3 billion in the first quarter, 15.4% more in nominal terms than in the corresponding quarter of last year.

Tax revenues from the capital market totaled NIS 330 million in March, 14% more than in March 2013. Tax revenues from interest fell by 11%, but tax revenues from securities rose 45%, because of the Tel Aviv Stock Exchange (TASE) rally.

Real estate tax revenue totaled NIS 697 million in March, 16.3% more in real terms than in the corresponding month. A breakdown by the type of tax showed an 11.4% increase in betterment tax revenues and an 18.7% increase in purchase tax revenues.

Published by Globes [online], Israel business news - - on April 7, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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