Israel’s fiscal deficit continues to rise, marking the 17th consecutive month of increase after hitting zero in March 2023. The deficit for the twelve-month period ending in August reached 8.3% of GDP, amounting to NIS 161 billion, as reported by Finance Ministry Accountant General Yali Rothenberg.
In comparison, the deficit stood at 8.1% of GDP, or NIS 155 billion, at the end of July, moving further away from the government’s target of 6.6% set in the revised 2024 budget approved last March.
The Finance Ministry’s Projections
The Finance Ministry anticipates a further increase in the deficit until the end of the current month, followed by a slight decrease. This projection is based on the exclusion of the spike in government spending during October last year due to the conflict, which will no longer be included in the twelve-month figures.
Finance Minister Bezalel Smotrich believes that the ministry will successfully meet the 6.6% of GDP deficit target by the conclusion of 2024.
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