Israel's state coffers are filling up. Israel's fiscal surplus for the 12 months ending July 2022 was NIS 9.7 billion, or 0.6% of GDP, the Ministry of Finance Accountant General reports.
The figure has risen from 0.4% in the 12 months ending June 2022, which was the first time since 2007 that Israel had ended 12 months with a cumulative fiscal surplus, rather than a cumulative deficit.
The fiscal surplus in July was NIS 2.6 billion and since the start of 2022 the fiscal surplus amounts to NIS 34.4 billion. With the exception of June when there was a fiscal deficit, there has been a surplus in every other month in 2022, with state revenues exceeding state expenditure. In the 12 months ending July 2021, Israel had a fiscal deficit of NIS 44 billion. The main reason for the surplus this year was a 21.7% rise in tax collection between January and June 2022 while expenditure fell due to the end of Covid-related payouts.
Since the start of 2022, state revenues have totaled NIS 281 billion, while state expenditure has been NIS 246 billion, down 10.7% from the corresponding period of 2021.
One area in which there has been a fall in state revenues has been from fuel excise, which has been temporarily cut by Minister of Finance Avigdor Liberman. Revenues from fuel excise in July 2022 was NIS 1.9 billion (before subtracting diesel refund arrangements), down 6% from July 2021. Excise tax was cut by NIS 0.50 per liter in April and was cut a further NIS 0.50 to NIS 1 this month.
Published by Globes, Israel business news - en.globes.co.il - on August 8 2022.
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