Figures for April budget performance and state tax revenues published today by the Ministry of Finance show that net revenues from real estate taxes totaled NIS 679 million in April, down 20%, compared with April 2016. Betterment tax revenues totaled NIS 254 million, a real decline of 29%, compared with the corresponding month last year, while purchase tax revenues amounted to NIS 425 million, down 12%, compared with April 2016.
Despite the decline in revenue from land taxes, total revenues from taxes and fees reached NSI 24.1 billion in April, 10.8% more in real terms than in the corresponding month last year. The figures show that revenues from direct taxes grew 8.8%, while revenues from indirect taxes were up 13.5%. Tax revenues totaled NIS 100.4 billion in January-April 2017, compared with NIS 93.9 billion in the corresponding period last year. Excluding legislative changes and postponement of VAT reimbursements, tax revenues grew by 6%. Revenues from direct taxes were up 11%, among other things due to one-time tax revenues, while indirect tax revenues were 1% higher.
The Ministry of Finance notes that tax revenues in the first quarter exceeded the original budget forecast by NIS 1.6 billion, including NIS 1.2 billion in one-time tax revenues. The 2017 forecast was therefore revised in April from NIS 294.5 billion to NIS 297.0 billion.
The Ministry of Finance budget deficit figures show a government budget deficit of NIS 500 million in April and NIS 2.9 billion in January-April, compared with a NIS 1.1 billion deficit during the corresponding period in 2016. The planned 2017 budget deficit is NIS 37 billion, 2.9% of GDP. The cumulative budget deficit over the past 12 months amounts to 2% of GDP.
Government spending (excluding repayment of the principal on government debt) totaled NIS 28.1 billion in April, including NIS 23.3 billion in spending by government ministries, NIS 1.9 billion in payments for interest on the government debt, and NIS 2.8 billion in repayment of principal and interest to the Nation Insurance Institute.
Published by Globes [online], Israel Business News - www.globes-online.com - on May 7, 2017
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