The deficit in the last 12 months dropped to 9.3% of the GDP - 30% jump in tax revenues

The current account deficit in the state budget in the last 12 months up to July dropped to a single-digit figure - 9.3% of the GDP. The deficit fell after a sharp jump of about 30% in state tax revenues in July.
The deficit in June reached 10.1% and has been declining since the peak of March, when it stood at 12.1%.

The total deficit is about NIS 44 billion. The volume of tax collection in Israel soared to an all-time high of NIS 35.8 billion - an increase of 23.7% compared to the same period last year. The increase was mainly due to the investments and issues of the high-tech industry. In discussions on the state budget, the Treasury estimated that 2021 will end with a deficit of 6.8%. As mentioned, the decrease in the deficit last month was due to a slight decrease on the expenditure side, but mainly due to an increase on the income side. State revenues since the beginning of the year amounted to about NIS 231.5 billion, a jump of about 30% compared to last year, and an increase of about 14% compared to 2019.
The state's tax revenues in July amounted to a record amount of NIS 37.9 billion. The previous record was in January this year, when about NIS 34 billion was collected. The total deficit is about NIS 44 billion.
The high volume of tax revenues meant that in July the state was almost balanced in its activities and recorded a deficit of only NIS 0.8 billion - compared with a deficit of close to NIS 10 billion in June.
On the government expenditure side, total government expenditure reached NIS 38.8 billion, including credit. This expense includes the corona assistance programs.
In total, the government's expenditure on floor assistance programs reached NIS 159 billion at the end of July - about 79% of the total implementation of the plan, including budget items and the provision of credit.
The annual expenditure framework for 2021 is about NIS 420 billion, and about NIS 68 billion has been added to this framework, for the economic assistance program due to the corona crisis. In the previous year (2020), the expenditure framework amounted to NIS 410 billion, and together with the assistance program, expenditure reached NIS 479 billion.
By the end of July, the size of government spending was about NIS 276 billion, compared to NIS 250 billion in 2020, an increase of 10.4%. However, when the expenses on the economic assistance program are neutralized, the increase is lower and stands at about 3.4%. This is because in 2020 the significant aid started only in April, while in 2021 the aid was high at the beginning of the year and as of today it is decreasing.
The government assistance program for Corona totals about NIS 202.3 billion, this number includes both cash expenditures and government liabilities (such as state-guaranteed loan funds). By the end of July, about NIS 159 billion had been spent, which is about 79% of the budget earmarked for aid to Corona.
Of the items in the assistance program, the items dealing with health and civilian response, and social security, received high percentages of implementation (85%, and 93%, respectively). While the sections in the plan relating to business continuity and the acceleration and development of the economy were implemented rather low (67%, and 58% respectively).