Israel's Budget Deficit Holds Steady at 3.2% of GDP Ahead of Elections
Translated & summarized from Ynet by baba
Israel's budget deficit remained stable at 3.2% of GDP in the year ending September, totaling 71.8 billion shekels. Higher-than-expected revenues contributed to the low deficit, despite a monthly deficit increase in September. The deficit is projected to grow by year-end, with a significant increase planned for the defense budget. Government revenues rose 10.4% year-over-year, while expenditures increased by 3.4%.
The story in 5 lines · by baba
- Israel's budget deficit held steady at 3.2% of GDP, totaling 71.8 billion shekels.
- The monthly deficit in September was 10.1 billion shekels, up from 9.5 billion the previous year.
- Revenues increased by 10.4% year-over-year, contributing to the low deficit.
- The defense budget is expected to increase by approximately 25 billion shekels.
- The deficit is forecast to rise significantly by the end of the year.
Israel's state budget deficit remained unchanged at 3.2% of the Gross Domestic Product (GDP) in the twelve months leading up to September, totaling 71.8 billion shekels. This figure is significantly lower than the 4.9% deficit approved by the government for 2026. In September alone, the monthly deficit was 10.1 billion shekels, an increase from the 9.5 billion shekels recorded in September of the previous year. This occurred despite government restrictions on new, unapproved expenditures in the 90 days preceding elections.
According to forecasts from the Ministry of Finance and the Bank of Israel, the deficit is expected to rise significantly by the end of the year, particularly in December, as government ministries typically utilize their remaining budgets. Additionally, an increase of approximately 25 billion shekels is anticipated for the defense budget in the autumn, raising it from 158 billion to 183 billion shekels, potentially more based on security establishment demands.
Data released by the Accountant General in the Ministry of Finance indicated that state revenues in September reached about 47 billion shekels. For the year to date, revenues totaled 457.1 billion shekels, a substantial increase from 414.1 billion shekels in the same period last year, marking a 10.4% rise. The current low deficit is attributed primarily to these higher-than-expected revenues.
Government expenditures in September amounted to approximately 57.1 billion shekels. Year-to-date expenses reached about 486.6 billion shekels, compared to roughly 470.5 billion shekels in the corresponding period of the previous year, representing a 3.4% increase.
