Despite recording a fiscal deficit of NIS 100 million in September 2022, Israel has recorded an accumulative fiscal surplus of NIS 33 billion since the start of the year, the Ministry of Finance Accountant General reports. Over the same period of 2021, Israel recorded a fiscal deficit of NIS 51 billion, as the country tackled the Covid crisis.
The fiscal surplus over the 12 months ending September 2022 was 0.9% of GDP, totaling NIS 15.7 billion, up from 0.6% and NIS 9.8 billion in the 12 months ending August, 2022. However, the Accountant General explains that taking into account tax deviations of NIS 8 billion in September 2021, the fiscal surplus for the past 12 months falls to 0.4% of GDP (about NIS 7.5 billion). The fall stems from tax deviations from September to October last year due to the holidays.
The improvement in fiscal data is reflected in both revenues and expenditure. State revenues since the beginning of 2022 have amounted to NIS 355 billion, up 20.2% from the corresponding period of 2021. Government expenditure since the start of 2022 has amounted to NIS 321.7 billion, down 7.2% from the corresponding period of last year.
The continuous increase in state tax revenues saw the tax collection forecast revised upwards last July. Despite the latest revision, the reality managed to exceed the forecasts and in the third quarter of 2022, NIS 106 billion was collected in taxes in Israel, NIS 3 billion above the forecast.
Published by Globes, Israel business news - en.globes.co.il - on October 13, 2022.
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