The government deficit more than doubled to NIS 12 billion in January-July 2012 from NIS 5.2 billion in the corresponding period of 2011, the Ministry of Finance's Office of the Accountant General reported today. The tax shortfall was NIS 2.9 billion in January-July.
The deficit for the preceding 12 months has been worsening, reaching NIS 35.5 billion, 4% of GDP for August 2011-July 2012. The budget deficit for 2012, under the biennial budget, is 2% of GDP, or NIS 18.3 billion.
There was a windfall in indirect taxes in the last few days of July, probably due to buyers bringing forward purchases ahead of VAT hike that was scheduled to come into effect on August 1. This hike was pushed back until September 1.
Tax receipts rose to NIS 129.5 billion in January-July from NIS 126 billion in the corresponding period of last year, and ministries' spending rose 8.7% to NIS 128.7 billion from NIS 118.3 billion. Under the budget, spending by ministries in 2012 is supposed to be 4.9% higher than in 2011.
Published by Globes [online], Israel business news - www.globes-online.com - on August 7, 2012
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