Israel's fiscal deficit continues to narrow. The Ministry of Finance reported today that the deficit on government budgetary activity in April was NIS 900 million, which compares with a deficit of NIS 2.8 billion in April 2013.
In the period January-April 2014, the fiscal deficit totaled NIS 1 billion, compared with NIS 7.5 billion in the corresponding period of 2013. The cumulative deficit for the past twelve months (May 2013 to April 2014) fell to 2.5% of GDP. The monthly deficit has fallen consistently since January this year.
Government spending in April (excluding principal repayments) totaled NIS 24.4 billion, while tax collection totaled NIS 20.1 billion.
In January-April, tax collection totaled NIS 86.4 billion, compared with NIS 75.9 billion in the corresponding period last year, representing a nominal rise of 13.8%.
Tax collection from the capital market totaled NIS 488 million in April, 90% more than in April 2013. Of that, tax on interest rose 2.5%, while tax on gains on securities rose by 225%, thanks to the rises in stock and bond prices in the past few months.
Conversely, tax revenue from real estate taxation totaled NIS 611 million, representing a fall of 15.3% in real terms in comparison with April 2013.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2014
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