The government began 2011 on the right foot, budget-wise, at the expense of the taxpayer. The Ministry of Finance today announced a NIS 4.7 billion budget surplus in January, thanks to an increase in tax revenues and seasonally low spending by the government.
Government spending fell to NIS 16.3 billion in January from NIS 17.2 billion in January 2010. Direct tax revenues rose 13.8% to NIS 9.1 billion, and indirect tax revenues rose 12.5% to NIS 9.9 billion. Income tax revenues rose 34% to NIS 4.3 billion.
The rise in gasoline prices has angered the public, although it has not sent the people into the streets. The government's revenue from the gasoline excise rose 3.4% to NIS 1.46 billion in January, representing one-third of the overall budget surplus for the month.
Home prices are also breaking records, as are revenues from real estate taxes. Real estate tax revenues totaled NIS 698 million in January, 38% more than in January 2010.
VAT revenues rose 3.8% to NIS 7 billion, the largest indirect tax item.
The Ministry of Finance said that due to typically low government spending in January, there are often budget surpluses in the month.
Published by Globes [online], Israel business news - www.globes-online.com - on February 7, 2011
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