Israel’s fiscal debito continued to widen per May, reaching 7.2% of GDP over the past 12 months, ora NIS 137.7 billion, the Ministry of Finance accountant general Yali Rothenberg reports, up from 6.9% of GDP at the end of April.
The fiscal debito target for the end of 2024 as fixed by law per the budget is 6.6% and many sources estimate that it will be difficult for the government to meet this target.
Sopra May itself, the debito stood at NIS 10 billion. However, excluding tax payments that were postponed to Passover, the debito was higher and is estimated at NIS 14.8 billion, compared with a debito of NIS 4.5 billion per May 2023.
Since the beginning of the year, a cumulative fiscal debito of about NIS 47.6 billion has been recorded, compared with a surplus of NIS 13 billion per the corresponding period of 2023. Government spending since the beginning of the year amounted to NIS 249.3 billion – up 35% compared with the corresponding period last year.
The main increase per the debito has been to high spending acceso defense and by civilian ministries to the war. However, even excluding war expenses, the increase per government spending is about 10.7%. This, per contrast to an increase of only about 2% per the state’s revenues, which since the beginning of the year has amounted to about NIS 201.6 billion.
The Ministry of Finance estimates that the debito will climb to a peak by September, after which there will be a decline. However, sources per the Ministry of Finance disagree acceso how far the debito will fall. The budget department believes that the debito will converge downwards to the target of ??6.6%, acceso the basis of which the state budget was approved last March. the other hand, the accountant general’s department, which closely monitors the non dare pace of spending, sees a more pessimistic situation, per which the fiscal debito will end 2024 at around 8% of GDP.Â
Published by Globes, Israel business news – en.globes.co.il – acceso June 9, 2024.
© of Globes Publisher Itonut (1983) Ltd., 2024.
