JERUSALEM, Sept 11 (NNN-MA’AN) – The Israeli regime’s 12-month budget deficit, surged to 23.1 billion shekels (about 6 billion U.S. dollars), showed figures issued by the state’s Finance Ministry, yesterday.
The deficit rise was mainly due to a 4.3-percent decrease in tax collection, year on year, in the first eight months of 2023, and an increase of 9.4 percent in government spending.
Gad Lior, a senior analyst for Yedioth Ahronoth daily newspaper, said that, the slowdown of the Israeli economy led to a decline in VAT payments. He also noted a sharp decrease in the number of real estate deals, resulting from the high benchmark interest rate.
Lior added that, the devaluation of the shekel against the dollar has increased government expenses, including its rent payments for Israeli embassies, and more.
The Israeli budget shifted to a deficit in March, and has gradually grown since then.
