Finance Ministry reports first budget surplus in a year

January budget surplus totals NIS 2.6B

Spending last month restrained by lack of 2013 state budget due to Knesset Elections

Reuters|Published: 02.12.13 , 07:27

Israel posted a budget surplus of NIS 2.6 billion ($705 million) in January for its first surplus in a year, the Finance Ministry says.

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Spending last month was restrained by the lack of a 2013 state budget due to the January 22 parliamentary election. Prime Minister Benjamin Netanyahu is in the process of trying to cobble a governing coalition, whose top priority is to approve a budget.

In 2012, Israel recorded a budget deficit of NIS 39 billion ($10.5 billion), or 4.2% of gross domestic product. That was above an initial target of 2% and a revised target of about 3.5%. It also topped 2011's deficit of 3.3% of GDP.

Income from taxes alone totaled NIS 21.4 billion ($5.8 billion) in January, down 9.1% from January 2012.

Israel is targeting a deficit of 3% of GDP in 2013. To meet that aim, the government will need to implement steep spending cuts and possible tax hikes.