the cumulative Deficit since January reached an all-time high of NIS 87.5 billion

The Ministry of Finance published today (Sunday) the data on the cumulative deficit since January, which reached an all-time high of NIS 87.5 billion this year, compared with NIS 29.2 billion in the corresponding period last year. In August, the government had a large deficit of NIS 17.3 billion, compared with NIS 5.2 billion in August last year. The cumulative deficit in the last 12 months stands at 8.1% of gross domestic product (GDP). The increase in the deficit was slightly reduced by the collection of VAT at a much higher rate than usual in August, due to the "shopping celebration" of Israelis.
The corona crisis has caused the government to spend huge sums since March to strengthen the health care system, support businesses and the self-employed, pay unemployment benefits to the laid off and those who go to the IDF, and pay large-scale grants to citizens on Passover and early August.
According to data from the Ministry of Finance, the total expenditure of the government in August amounted to NIS 44.1 billion, according to the following breakdown: expenditure by government ministries NIS 41.4 billion, of which civilian ministries NIS 35.9 billion and the defense establishment NIS 5.5 billion. Interest payments on government debt NIS 2.5 billion, and repayment of principal and interest to the National Insurance Institute NIS 200 million.
Since the beginning of the year, government expenditures have totaled NIS 292.9 billion, of which NIS 35.5 billion are expenditures intended to deal with the corona crisis. Government spending in the context of the crisis will increase significantly with grant payments, compensation for business losses and unemployment benefits until June 2021.
Interest payments on government debt are also inflated, reaching NIS 20.6 billion, and the repayment of principal and interest to the National Insurance Institute already amounts to NIS 12 billion.