Israel's Budget Deficit Continues to Shrink as Tax Revenues Rise

Israel's cumulative budget deficit over the past 12 months has decreased to approximately 3.2% of the Gross Domestic Product (GDP), according to data released by the Ministry of Finance. The ministry's August budget execution report indicates a continued downward trend in the deficit, accompanied by a significant increase in national tax revenues.

In August alone, the budget deficit stood at about 7.9 billion shekels, a reduction from the 9.6 billion shekels recorded in August of the previous year. Annually, the deficit dropped by 0.1 percentage points to reach 3.2% of GDP.

State revenues for August totaled approximately 47.9 billion shekels. From the beginning of the year until the end of August, revenues reached about 410.1 billion shekels, marking an 11.5% increase compared to the same period last year (367.7 billion shekels).

Government expenditures also rose, but at a more moderate pace. August expenditures were around 55.7 billion shekels, and year-to-date expenditures reached approximately 429.3 billion shekels, a 3.6% increase from 414.5 billion shekels in the corresponding period last year.

The data suggests an ongoing improvement in Israel's fiscal situation, with revenue growth substantially outpacing expenditure growth, contributing to the declining deficit.