Israel’s fiscal deficit widens – Globes

Israel’s fiscal deficit widened to 0.3% of GDP, or NIS 4.9 billion, in the 12 months ending April 2023, up from 0.01% in the 12 months ending March 2023, the Ministry of Finance Accountant General reports. Although there was a fiscal surplus of NIS 3.3 billion in April 2023, this was down from a fiscal surplus of NIS 8 billion in April 2022.

While government expenditure has risen 6.9% in the first four months of 2023 compared with the corresponding period of 2022, government revenues have fallen 3.2%.

Since the start of 2023 state revenues from taxes have amounted to NIS 149 billion, down 7% from the corresponding period of 2022. Revenue from direct taxes fell 10%, and revenues from indirect taxes fell 3% between January-April 2023 compared with January-April 2022.

State revenues from real estate taxation reflects the difficulties in the market. The revenues from this sector in April amounted to NIS 1 billion – a real drop of 49% compared with April 2022. Revenue from betterment tax fell 56% and revenue from purchase tax fell 45%, compared with the corresponding period last year. The Ministry of Finance notes, “This is a month with few working days due to the holidays. April 2022 also had the Passover holiday, but with more working days.” Cumulatively, since the beginning of the year revenues from real estate taxes has fallen 35%.

Published by Globes, Israel business news – en.globes.co.il – on May 8, 2023.

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