Israel's fiscal deficit widened to 1% of GDP at the end of July 2023, amounting to NIS 18.3 billion over the past 12 months, the Ministry of Finance Accountant General Division reports. Israel's fiscal deficit has risen by almost NIS 3 billion from the end of June 2023 when it was NIS 15.4 billion.
This latest figure brings Israel's 2023 budget to the threshold of the annual fiscal deficit target of 1.1% after just seven months. The trend suggests that the fiscal deficit will be significantly higher than the target approved in the budget by the end of the year.
Although the monthly deficit in July was 'only' NIS 600 million, compared with NIS 6.2 billion in June, compared with July 2022 there was a fiscal surplus of NIS 2.5 billion, thus the figure widened the accumulative deficit for the past 12 months.
State revenues since the start of 2023 have totaled NIS 269.6 billion, down 4.1% or more than NIS 11 billion compared with the corresponding period of 2022.
Alongside the reduction in revenues, government spending since the start of 2023 has risen by 6.8% or NIS 16 billion to NIS 263.4 billion compared with the corresponding period of 2022.
Published by Globes, Israel business news - en.globes.co.il - on August 8, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.