Israel's fiscal deficit widened to 0.9% of GDP at the end of June 2023, amounting to NIS 15.4 billion over the past 12 months, the Ministry of Finance Accountant General Division reports. Israel's fiscal deficit had widened from 0.6% of GDP, or NIS 10.7 billion, in the 12 months ending May 2023, and 0.03%, or NIS 4.9 billion in the 12 months ending April 2023.
In June alone the fiscal deficit amounted to NIS 6.2 billion, compared with a fiscal deficit of NIS 1.5 billion in June 2022. The fiscal surplus since the start of 2023 has withered to just NIS 6.7 billion from NIS 13 billion at the end of May.
State revenues in the first six months of 2023 have fallen 4.5% compared with the corresponding period of last year, when revenues were especially high. State revenues from real estate taxes reflected the problems in the market. Revenue from this sector amounted to NIS 1.1 billion in June 2023, down 56% from NIS 2.5 billion in June 2022. Betterment tax collection fell 52% and real estate purchase tax fell 61% compared with last June. Real estate tax collection hit its lowest level since the start of 2021.
At the same time, state expenditure rose by 6.9%, so the widening fiscal deficit was due to a fall in revenues and rise in expenditure.
Published by Globes, Israel business news - en.globes.co.il - on July 9, 2023.
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