Israel reported a fiscal surplus of NIS 9.8 billion in the 12 months ending December 31, 2022, representing 0.6% of GDP, the Ministry of Finance Accountant General reports. This was the first time since 1987 that Israel recorded more revenue than expenditure.
However, December saw the biggest fiscal deficit in 2022 of NIS 18.7 billion after a deficit of NIS 3.1 billion in November, the second biggest deficit over the past year. December traditionally has a high fiscal deficit with high government expenditure as departments take advantage of the balances in their annual budget before the end of the year. January 2022 had the highest fiscal surplus in the year of NIS 18.6 billion.
The Ministry of Finance said, "2022 was characterized by high and exceptional growth in state revenues." Revenues amounted to NIS 468 billion, up 13.6% from 2021, reflecting the growth in revenues after the Covid pandemic.
While revenues rose, expenditure declined. Government expenditure amounted to NIS 458.8 billion in 2022 compared with NIS 481 billion in 2021. The 4.8% reduction in spending stemmed mainly from the end of the state assistance program for businesses and the unemployed during the Covid pandemic.
Published by Globes, Israel business news - en.globes.co.il - on January 11, 2023.
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