The Israeli Ministry of Finance said on Thursday that the deficit had risen in the last 12 months until April to seven percent of GDP, compared to 6.2 percent in the year ending in March, exceeding the target of 6.6 percent for the entire year 2024.
Tax revenues in Israel also decreased by 4.1 percent in the first four months of the year, and tax income fell by 13.1 percent in April alone.
Last February, the Israeli Parliament’s Finance Committee approved a proposal to significantly raise the 2024 budget deficit target from 2.25 percent to 6.6 percent of GDP, as a result of increased spending to help finance the war in Gaza.
The war led to increased costs of defense and compensation for those affected by the conflict.
This includes companies and residents of border towns near Gaza in the south and adjacent to Lebanon in the north, where Hezbollah fires rockets, as well as hotels where tens of thousands of displaced Israelis reside.
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