Israel's fiscal deficit continues to narrow

Avigdor Liberman Photo: Lior Mizrachi

Rents resume steep rise

The cumulative deficit for the twelve months to the end of June was NIS 144 billion, or 10.1% of GDP.

The cumulative deficit in Israel for the twelve months to the end of June was NIS 144 billion or 10.1% of GDP, down from NIS 160.3 billion, or 11.7% of GDP at the end of 2020, the Ministry of Finance Account General reports. At the end of May the fiscal deficit was 10.5% of GDP.

To a great extent the narrowing of the deficit can be attributed to rising government revenues, which amounted to NIS 181.9 billion in the first six months of 2021, up 22% from NIS 148.1 billion in the corresponding period of 2020. Revenue from direct taxes rose 25% during this period and revenue from indirect taxes rose 20%, and revenue from fees rose 1%.

Published by Globes, Israel business news - en.globes.co.il - on July 8, 2021