According to preliminary estimates from the Accountant General, the budget deficit excluding net credit reached NIS 15.2 billion in 2008. The figure represents 2.1% of GDP.
The budget deficit target was 1.6% of GDP, or NIS 11.5 billion. The budget deficit, as a proportion of GDP, rose in 2008 after four consecutive years of falling deficits, as a proportion of GDP, from 5.4% in 2003 to no deficit in 2007.
The accountant general's office at the Ministry of Finance noted that the government's plan to encourage economic growth in light of a global economic crisis, increased government expenses in recent months and increased ministry investments.
Though the data is preliminary, apparently there will not be significant changes in the components of the deficit.
The estimated GDP for 2008 is NIS 715.8 billion.
There was a net NIS 9.7 billion deficit in domestic activities, and a net NIS 5.5 billion deficit from overseas activities.
Much of the deficit is related to lower revenues. Total revenues, which are essentially direct and indirect taxes and fees collected, as well as US government aid, were NIS 5.2 billion lower than originally budgeted. Tax collections were NIS 6.5 billion lower than budgeted.
Published by Globes [online], Israel business news - www.globes-online.com - on January 13, 2009
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