FAMAGUSTA GAZETTE – Israel’s budget deficit for the 12 months to April fell to 5.1 percent of gross domestic product (GDP), down from 8.5 percent recorded at the end of September 2024, the Finance Ministry has announced.
Despite the decline, the deficit remains above the government’s target of 4.9 percent of GDP.
The ministry reported a budget shortfall of 7.2 billion shekels (2.02 billion U.S. dollars) in the first four months of 2025, a sharp improvement from the 38.1-billion-shekel deficit in the same period a year earlier.
The improvement was attributed to a 25 percent year-on-year increase in tax revenues, while government spending from January to April rose 3.9 percent to 202.8 billion shekels.
Officials cited increased defense spending amid ongoing conflicts as a key driver of rising expenditures, alongside broader budget allocations under the new fiscal plan.