Israel's Budget Deficit Holds Steady at 3.3% of GDP in July

Israel's budget deficit as a percentage of GDP remained unchanged at 3.3% in July, according to an estimate released by the Ministry of Finance. The monthly deficit for July was approximately 4.8 billion shekels, while the cumulative deficit since the start of the year reached 11.5 billion shekels. Over the past 12 months, the total deficit amounted to about 72.9 billion shekels.

In July, government revenues totaled 55 billion shekels, bringing the total revenue since the beginning of the year to 362.1 billion shekels, compared to 323.8 billion shekels during the same period last year. The Ministry of Finance had previously reported that the government’s budget deficit in June was around 8.6 billion shekels, a significant decrease from the 16.8 billion shekels deficit recorded in June 2025.

The cumulative deficit over the last 12 months as of June was also 3.3% of GDP, marking a 0.4 percentage point decrease compared to May. The last time the deficit as a share of GDP was at this level was in November 2023.