Israel's cumulative fiscal deficit for the past twelve months (from December 2018) stands at 3.7% of GDP, the Ministry of Finance announced this evening. This is similar to the level of the deficit last month, and close to the annual deficit that the ministry expects for 2019 (3.6%).
In absolute numbers, the deficit totals NIS 37.1 billion since the beginning of the year, which compares with NIS 24.8 billion in the corresponding period of 2018. Since the beginning of 2019, government expenditure has risen 6.1% in comparison with the corresponding period. The planned increase in the budget was 5.1%. Spending by civilian ministries rose 8.2%, while defense spending rose 1.4%.
State revenues rose 2.6% in nominal terms comparison with the corresponding period.
The Knesset Finance Committee approved an across-the-board cut of NIS 1.47 billion in the budgets of government ministries, to finance a supplementary budget for the Ministry of Labor, Social Affairs and Social Services, higher education, housing and construction, and transport development. The committee approved budget transfers totaling NIS 9.43 billion for various needs, including NIS 1.66 billion to the Ministry of Defense for unspecified purposes.
Meanwhile, taxation figures indicate a 6.3% drop in vehicle imports so far this year in comparison with the corresponding period of last year. The Tax Authority explains the decline by the particularly high vehicle import numbers at the beginning of 2018.
Published by Globes, Israel business news - en.globes.co.il - on December 4, 2019
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