Both tax income and spending were the highest of the year.
Income from taxes alone totaled NIS 19 billion ($5.24 billion) in March, up 5.7% versus March 2012. For the first three months of 2013, tax revenue was down 1.8%.
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 ($10.76 billion), or 4.2% of gross domestic product. That was above an initial target of 2% and a revised target of about 3.5%.