The cumulative deficit in Israel for the twelve months to the end of July 2021 was 9.3% of GDP, down from 10.1% at the end of June, 10.5% at the end of May and 11.7% of GDP at the end of 2020, the Ministry of Finance Account General reports.
To a great extent the narrowing of the deficit can be attributed to rising government revenues, which amounted to NIS 231.5 billion in the first seven months of 2021, up 29.5% from NIS 203.3 billion in the corresponding period of 2020.
In July expenditure fell by 0.3% as a percentage of GDP but in the first seven months of 2021 expenditure rose to NIS 275.9 billion, up 10.4% from the same period last year, mainly due to economic assistance due to the Covid pandemic.
The Ministry of Finance also reported that it has used 79% of the economic assistance allocated for alleviating the Covid crisis - NIS 159 billion out of NIS 203.3 billion.
Published by Globes, Israel business news - en.globes.co.il - on August 8, 2021
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