JERUSALEM, July 7 (NNN-MA’AN) – Israel’s annual budget deficit reached a record 88.4 billion new shekels (25.6 billion U.S. dollars), according to a report issued by the Ministry of Finance on Monday.
The deficit figure, between July, 2019 and June, 2020, accounts for 6.4 percent of Israel’s GDP, above the government target of three percent.
For the first half of 2020, the budget deficit reached 58.2 billion shekels, compared with 22 billion shekels recorded in the same period last year.
The deficit increase in the 2020 budget year is caused by government expenses, following the COVID-19 outbreak and a decrease in revenues.
The government revenues since the beginning of 2020 amounted to only 150.3 billion shekels, a significant decrease of 12.7 percent compared with the same period in 2019.
In June, the deficit amounted to 12.2 billion shekels, significantly higher than last year’s 6.9 billion shekels.
Israeli analysts estimated that government expenses is likely to grow even more, in the coming months, because of high amounts which will be allocated to fight against the virus and support businesses and employees.– NNN-MA’AN
