The deficit as a percentage of GDP in the last 12 months has dropped to zero!

The deficit as a percentage of GDP in the last 12 months has dropped to zero (-0.4%) as of May, the lowest rate since 2008. This is according to May data published today (Thursday) by the Ministry of Finance. This is the fifth month in a row that the state budget surplus has been measured.
The total budget surplus since the beginning of the year amounted to NIS 33.3 billion, compared with a deficit of NIS 34.8 billion in the corresponding period last year. The budget surplus measured in May alone amounted to NIS 1.4 billion, compared with a NIS 7.8 billion deficit measured in May last year.
Along with the significant and continuous increase in revenue as a percentage of GDP, there is a decrease in expenditure, which is due to a decrease in the volume of economic assistance program expenditures (about 3.6 billion cumulative performance since the beginning of the year compared to about 32.7 billion in the same period last year). State revenues since the beginning of the year amounted to NIS 206.3 billion, compared with NIS 164.5 billion in the corresponding period last year (reflecting an increase of 25.4% compared with the corresponding period last year).
Government expenditures since the beginning of the year amounted to NIS 0.173 billion, compared with NIS 3.999 in the corresponding period last year (reflecting a decrease of 13.2% compared with the corresponding period last year, excluding the assistance program - an increase of 1.7%).
In May 2022, the state's tax revenue amounted to NIS 38.0 billion, while in that month an extraordinary amount of NIS 1.2 billion was deducted. At uniform tax rates, state tax revenues increased in May 2022, in real terms, by about 16% compared to May 2021. Direct tax collection increased by 24% compared to last year. Collection of indirect taxes increased by 6% and collection of fees increased by 5%. The increase in direct tax revenues is largely explained by a significant increase in corporate income tax and real estate tax revenues.
In total, in January-May 2022, revenues amounted to NIS 194 billion, compared with NIS 153 billion in the corresponding period last year. At uniform tax rates, tax revenues rose by 18%. Direct tax revenues increased by 26%, indirect tax revenues increased by 9% and fee income increased by 7%.
Last month, even before the encouraging data was published, Finance Minister Avigdor Lieberman announced them at a faction meeting. "This is the first time since the establishment of the state that more than four months in a row of revenues exceed expenditures," Lieberman revealed, adding: "To enormous proportions due to the need to finance the fight against the plague with tens of billions of shekels, and the payment of grants and compensation to citizens and businesses in the country. We have now reached a deficit of 0.6%."
Since the beginning of the year, there has been a surplus in the state budget, which allowed the Ministry of Finance to reduce tax revenues on fuel and diesel by NIS 870 million last month, while reducing the price to the consumer by half a shekel.