Israeli Finance Ministry Reports Lowest Deficit Since November 2023 Amid Economic Growth

The Israeli Finance Ministry released a report showing a significant reduction in the national deficit alongside increased government revenues and economic activity. In June, the monthly deficit was approximately 8.6 billion shekels, down from about 16.8 billion shekels in June of the previous year. The cumulative deficit over the past 12 months stood at around 3.3% of GDP, marking a decrease of 0.4 percentage points.

Government revenues in June reached roughly 45.7 billion shekels, with total revenues since the start of the year amounting to about 307 billion shekels, an 11.4% increase compared to the same period last year. Government expenditures in June were approximately 54.3 billion shekels, with total spending since January at 313.8 billion shekels, a 1.9% rise from the previous year. These figures indicate robust and positive economic activity despite ongoing security challenges.

Finance Minister Bezalel Smotrich commented on the data, attributing the positive outcomes to the resilience of Israeli citizens and the economy, as well as responsible government management during nearly three years of intense conflict. He also dismissed left-wing campaigns aimed at raising economic concerns among the public, stating that the data disproves such fears.