The deficit fell to 3.1% of GDP due to continued state management according to a temporary budget

The budget deficit The current government of the Israeli government over the past 12 months has dropped to 3.1% of GDP, following continued state management according to a temporary budget. In January, a budget surplus was recorded, which reduced the current deficit to 3.2% (compared with 3.8% at the end of 2019). From data released Thursday Ministry of Finance From the beginning of the year, a decrease of 5.5% was recorded in the total expenditure of the government ministries compared with the corresponding period last year. However, it is important to remember that in January 2019, record expenses were recorded due to postponement of 2018 expenses. In January-February, revenues amounted to NIS 58.2 billion, compared with NIS 53.8 billion in the corresponding period last year. At uniform tax rates, tax revenue rose 9%. Direct tax revenue increased by 13% and indirect tax revenue increased by 5%. Stock revenue rose by about 9%. The Treasury announcement refers to February, as it was only towards its end, that the effect of the Corona began to be felt in Israel. Among other things, capital gains tax revenues reached 477 million (up 89% following a sharp rise in January).

The Treasury explained that “The reported decrease in the volume of government ministries in January – February is planned as a result of the” continuing budget “, which has a uniform monthly cap over all months, while there are relatively high principal and government debt payments in certain months, especially in the first half of the year. These repayments, which are a top priority for payment, require actions to reduce cash quotas for office expenses and create a surplus relative to the total monthly quota (surplus generated in certain months of the year can be transferred as long as the cumulative performance does not exceed the cumulative quota for the relative period of the year ) “.