The budget deficit rose to 0.9% of GDP at the end of June from 0.6% at the end of May, the accountant said.
Israel’s budget deficit widened to 0.9% of GDP by the end of June 2023, reaching NIS 15.4 billion over the past 12 months, according to the Finance Ministry’s General Directorate of Accounts. Israel’s fiscal deficit widened to 0.6% of GDP (NIS 10.7 billion) in the 12 months to May 2023 and to 0.03% (NIS 4.9 billion) in the 12 months to April 2023.
The budget deficit in June 2022 was NIS 1.5 billion, but in June alone the budget deficit reached NIS 6.2 billion. The fiscal surplus for 2023 has fallen from NIS 13 billion at the end of May to just NIS 6.7 billion.
State revenues for the first half of 2023 fell 4.5% compared to the same period last year when revenues were particularly high. State revenues from property taxes reflected market problems. Income from this sector reached NIS 1.1 billion in June 2023, down 56% from NIS 2.5 billion in June 2022. Compared to June last year, the improvement in tax collection decreased by 52% and the property acquisition tax decreased by 61%. Property tax collections fell to their lowest level since early 2021.
At the same time, state spending increased 6.9%, widening the budget deficit due to lower revenues and higher spending.
Published by Globes, Israel Business News – en.globes.co.il – on July 9, 2023.
© Globes Publisher Itonut (1983) Ltd., copyright 2023.
Bezalel Smotrich Credit: Michal Fattal
