The rise in taxes along with budget restrictions and a new method of GNP calculation have brought Israel's budget deficit to 3.3% of the GNP in August. This is a significantly lower rate than last year's deficit and the deficit planned for the coming year – 4.65% of the GNP.
According to Finance Ministry data, August saw a NIS 2.5 billion deficit in government activity compared to NIS 4.5 billion in August 2012. Since the beginning of the year, the accumulated deficit stands at NIS 12.9 billion compared to NIS 17.6 billion at the same time last year. (Avital Lahav)