The budget surplus in July reached NIS 10 billion due to an increase of 20% in the state's revenues

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by Ifi Reporter Category:Government Aug 8, 2022

The accumulated surplus in the last 12 months in the state budget reached 10 billion shekels in July, and the rate of surplus in the state budget in relation to the GDP reached 0.6% of the domestic GDP - this was announced by the Economic Accountant Division of the Ministry of Finance.
The surplus in the budget, for the second month in a row, is due to an increase of more than 20% in the state's revenues from the beginning of the year, compared to the corresponding period in 2021, to NIS 280 billion. The chief economist at the Ministry of Finance recently re-evaluated the state's revenue projections for 2022 to NIS 456.6 billion.
The budget surplus was also recorded following a decrease in state spending. According to the Treasury, state expenditures from the beginning of the year were 10% lower compared to the previous year, while the forecast was for a 6% increase in state expenditures in this period compared to 2021. Since the beginning of the year, a budget surplus of NIS 34.4 billion was recorded.
However, this decrease was caused by seasonal changes related to the timing of payments to the old pension funds. If we neutralize this change, the rate of increase in government spending is 5.5%, in relation to the aforementioned planned increase of 6% in spending.
The surplus in the state budget allowed the financial accountant to reduce Israel's debt, which still reaches more than a trillion shekels due to the increase in debt during the Corona period. During July, the government's net debt shrank by approximately NIS 22 billion, due to repayments of local and foreign debt and at the same time relatively low fundraising.
The Hashkal Division is also reporting for the first time the amount of compensation paid so far as part of the compensation plan for the victims of the Corona virus at the beginning of the year, when the Omicron wave raised the level of morbidity. In this compensation track, which was approved at the beginning of July, NIS 180 million from the state budget has been paid by the end of July.
This expenditure is within the aid packages for the Corona crisis. From the beginning of 2022, the government spent NIS 5.2 billion in cash as part of the aid programs to deal with the Corona crisis. The realization rate of the Corona budgets is now 92%.
The alarming news comes precisely from the direction of the increase in tax revenues. As predicted by the Chief Economist's Division at the Treasury, the rate of growth in tax revenues will become more moderate. In July, the increase in revenues reached 5% compared to July 2021, while cumulatively from the beginning of the year until June, the growth rate in tax revenues reached 25%.

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