Israel's fiscal deficit reaches 10.1% of GDP

Benjamin Netanyahu and Israel Katz / Photo: Amit Shabi , ידיעות אחרונות

The cumulative deficit for January to October 2020 is NIS 122.7 billion, up from NIS 37.8 billion in the same period last year.

Israel's fiscal deficit reached 10.1% of GDP for the twelve months to the end of October, the Ministry of Finance announced today. This represents a rise of about 1% from September. The cumulative deficit for January to October 2020 is NIS 122.7 billion. In the corresponding period last year, the deficit totaled NIS 37.8 billion.

The Ministry of Finance said in response to the deficit figure: "Since March, the effects of the coronavirus pandemic have found expression in the performance of the Israeli economy and in fiscal operations. The crisis has had a substantial effect on both the revenue and spending sides. Government expenditure has risen, tax revenues have fallen, while the National Insurance Institute is no longer depositing surplus revenue, in order to maintain reserves for the coming months, in which the Institute is expected to have a cash flow deficit. As a result of all these factors, the deficit that needs to be financed has grown."

And what of revenues? These have fallen substantially. For the year to the end of October, state revenues totaled NIS 258.4 billion, 10% less in nominal terms than in the corresponding period of 2019. Tax collection totaled NIS 254.4 billion for the period, 2.8% less than in the corresponding period.

Published by Globes, Israel business news - en.globes.co.il - on November 5, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Benjamin Netanyahu and Israel Katz / Photo: Amit Shabi , ידיעות אחרונות
Benjamin Netanyahu and Israel Katz / Photo: Amit Shabi , ידיעות אחרונות
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