With Annual Budget Surplus, Israel Registers Fiscal Deficit for October

Israel’s overall fiscal surplus shrunk slightly after the county posted a fiscal deficit in the month of October as the country spent NIS 3.1 billion ($880 million) more than its revenues.

The good news is, however, Israel’s overall budget surplus came to NIS 8 billion ($2.27 billion) – or 0.5% of GDP – in the 12-month period ending October 31.

Israel is still expected to continue to have a budget surplus for all of the year 2022, after estimates before the year began predicted a deficit of billions of shekels.

The Ministry of Finance explained the deficit on a delay in the payment of NIS 2.8 billion ($800 million) in taxes because of the recent period of Jewish holidays.

There have also been a large number of layoffs in Israel’s high-tech sector in recent months, causing s drop in tax revenue and an increase in social spending payments.