Photo: Shutterstock
Israel targeting deficit of 3% of GDP in 2013 (illustration)
Photo: Shutterstock

Feb. budget deficit totals NIS 4.3B

Finance Ministry says deficit so far in 2013 brought to NIS 1.7 billion. Income from tax alone totals NIS 17 billion in February

Israel posted a budget deficit of NIS 4.3 billion ($1.15 billion) in February to bring the deficit so far in 2013 to NIS 1.7 billion ($460 million), the Finance Ministry said on Thursday.


Spending has been restrained by the lack of a 2013 state budget due to the Knesset elections on January 22. Prime Minister Benjamin Netanyahu is in the process of trying to cobble a governing coalition, whose top priority is to approve a budget.


Income from taxes alone totaled NIS 17 billion ($4.6 billion) in February, flat versus February 2012. For the first two months of 2013, tax revenue was down 5.2%.


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.


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%.



פרסום ראשון: 03.08.13, 07:40
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