Israel's 2012 deficit rises to 4.2%

Israel Finance Minister Yuval Steinitz

The government deficit in 2012 totaled NIS 39 billion, 4.2% of GDP, more than double the figure planned, the Ministry of Finance announced today. The original deficit target was NIS 18.3 billion, or 2% of GDP.

The Ministry of Finance today admitted the unprecedented deviation from the original budget was due to an NIS 18.5 million shortfall in projected tax revenues. The ministry added that, even after the revised tax revenues projection made in early 2012, the revenues shortfall was NIS 2.21 billion.

On the spending side, the Ministry of Finance said that ministries' budget performance exceeded 100% to an average of 101.3%.

Source: www.globes.co.il