Israel's current budget deficit published by the Ministry of Finance dipped 0.2% to 3.4% in March, compared with 3.6% in February, although spending by civilian ministries continued to exceed the budget plan. The state received NIS 2 billion in one-time revenue from a change in vehicle taxes; without this change, the deficit would have remained at 3.6%.
Figures since the beginning of the year show an 11.3% increase in spending by government ministries, compared with the corresponding period last year. The original budget projected a 5.2% rise in spending in comparison with the actual amount spent in 2.18.
Spending by civilian ministries is up 12.9% this year, compared with 6% in the original plan, while the Ministry of Defense's spending dipped 1.2%, compared with a projected 1.9% increase. Tax revenues were up 2.2% in nominal figures, compared with the corresponding period last year. Revenues from direct taxes (such as income tax) fell, while revenues from indirect taxes rose 6%. Another interesting figure concerns revenues from National Insurance, which were NIS 2.3 billion more than in the corresponding period last year.
The National Insurance Institute invests its surpluses in designated bonds issued to it by the Ministry of Finance, an arrangement that the National Insurance Institute wishes to terminate.
Published by Globes, Israel business news - en.globes.co.il - on April 3, 2019
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