The government deficit tripled to NIS 4.6 billion in the first quarter of 2013 from NIS 1.6 billion in the corresponding quarter of 2012, the Ministry of Finance reported today. The deficit in March was NIS 2.9 billion.
The deficit for the 12 months through March was NIS 42 billion, or 4.5% of GDP, up from 4.2% at the end of 2012.
Expenditures, excluding repayment of the principle, was NIS 27.4 billion in March, including NIS 18.4 billion in spending by ministries, and NIS 9 billion in interest payments. Spending by ministries totaled NIS 51.7 billion in the first quarter, up 1.3% over the corresponding quarter. Defense spending fell by 5.6%, while spending by civilian ministries rose by 3.8%. Spending on salaries and welfare, which are inelastic, was 10.2% higher in the first quarter than in the corresponding quarter.
Tax revenues dipped to NIS 57.5 billion in the first quarter from NIS 57.7 in the corresponding quarter. Tax revenues rose to NIS 19 billion in March from NIS 17.8 billion in March last year.
Capital market taxes totaled NIS 285 million in March, up 13% over the corresponding month, and real estate taxes rose 14% to NIS 591 million, including a 17% rise in purchase taxes and a 9% rise in better taxes. Fuel excise totaled NIS 1.47 billion in March, up 6.7% over the corresponding month, but excise revenues for the first quarter fell 3.3%, compared with the corresponding quarter, to NIS 3.9 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on April 8, 2013
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