The financial deficit of Israel within the twelve months until the end of March 2025, for the sixth month in a row, has narrowed to 5.2 % of GDP, or 105.5 billion New, according to the Ministry of Finance, Yale Rothnberg today. During the twelve months until the end of February 2025, the financial deficit was 5.3 %.
The financial deficit in March 2025 itself was 13 billion New, a decrease from 14.9 billion New in March 2024. In the first quarter of 2025, Israel had a financial surplus of 3.7 billion New compared to a financial deficit of 26.4 billion NIS in the first quarter of 2024, in the early stages of the war.
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The improvement in the deficit on both sides of the equation has been measured. On the one hand, the state's revenues grew impressive, reaching 147.3 billion NIS in the first quarter of 2025, an increase of 22.1 % over the corresponding period from 2024.
However, the strongest revenues in the state treasures in the first two months of the year have been overseeing since then. This is due to the public to provide transactions and financial operations until the end of 2024, in order to avoid tax increases in the 2025 budget.
March was the last month without an approved budget, as it concluded three months of government spending. The decrease in spending stems from the restricted effect of the follow -up budget, which culminated in spending, and the reduction of spending on war compared to last year.
With the approval of the new 2025 budget, a certain acceleration is expected to accelerate the spending from April on the risk, but the expectation is that the deficit will continue in its landmark. Estimates at the Ministry of Finance indicate that the inability to decline to the last quarter is expected to continue when it climbs again.
The goal of the financial deficit of the Ministry of Finance for the 2025 budget is 4.9 %. The end result may be better if the last deficit forecast issued by the Bank of Israel yesterday, which was reduced to 4.2 % of GDP by the end of the year, is correct. The Bank of Israel also expects the deficit to decrease to 2.6 % of GDP in 2026-a level that allows the debt rate to decrease to GDP.
It was published by Globes, Israel Business News – En.globes.co.il – on April 8, 2025.
© Copy Publish Publisher Itonut (1983) Ltd. , 2025.
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