Israel's fiscal deficit narrows to 8%

Avigdor Liberman Photo: Israel Institute of Democracy

The cumulative fiscal deficit in Israel for the twelve months to the end of August 2021 narrowed to 8% of GDP, or NIS 116.9 billion, down from 9.2% at the end of July.

The cumulative fiscal deficit in Israel for the twelve months to the end of August 2021 narrowed to 8% of GDP, or NIS 116.9 billion, down from 9.2% at the end of July, the Ministry of Finance Accountant General reports, as Covid crisis expenditure shrinks. The fiscal deficit has been consistently narrowing all year to 10.1% at the end of June, from 10.5% at the end of May and 11.7% of GDP at the end of 2020.

To a great extent the narrowing of the deficit can be attributed to rising government revenues. Tax revenues brought the government NIS 8.32 billion in August and are up 23.7% since the beginning of the year compared with the corresponding period of 2020. In particular the booming housing market has increased government revenues with real estate purchase tax revenues up 87% and betterment tax revenues up 71%.

Government expenditure rose 5.5% in August and has totaled NIS 310.3 billion since the start of the year. Expenditure in August itself was NIS 34.5 billion.

Published by Globes, Israel business news - en.globes.co.il - on September 13, 2021

Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Avigdor Liberman Photo: Israel Institute of Democracy
Avigdor Liberman Photo: Israel Institute of Democracy
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