Israel's 2016 budget deficit lowest since 2008

Mutual funds, finance  phtoto to go
Mutual funds, finance phtoto to go

The budget deficit fell to NIS 25 billion last year, according to the State Report.

According to the state reports, which combine financial figures from 191 different entities, government ministries, statutory corporation, and government companies, the final government deficit for 2016 amounted to 2.1% of GDP (NIS 25 billion). This is the lowest deficit since the 2008 global credit crisis, and NIS 10 billion less than the planned 2016 deficit.

Israel's 2016 accounting deficit, on the other hand, was NIS 123 billion, and the main reason for this was the revision of the mortality tables at the National Insurance Institute (NII). As a result of this change (and other changes, such as the increase in the old age allowance), the NII's future payments grew NIS 100 billion to NIS 652 billion.

Furthermore, both government spending and government revenue increased in 2016: state revenue was up 5% to NIS 460 billion, while spending by government ministries grew 8%. Spending by the civilian ministries rose 9% to NIS 225 billion, and the defense establishment's spending was up 4% to NIS 72.9 billion.

A look at the figures for 2006-2010 shows that spending by the civilian ministries is on an upward trend (from 65.3% to 70.3% of budgetary spending), defense establishment spending dipped from 22.6% to 20.2% of budgetary spending, and interest expenses on the debt are clearly declining (from 12.1% to 9.4%), thanks to the low interest rate in the capital markets.

Published by Globes [online], Israel business news - www.globes-online.com - on August 21, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Mutual funds, finance  phtoto to go
Mutual funds, finance phtoto to go
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