The Israeli government’s 12-month budget deficit sharply rose to 62.3 billion shekels (about 16.8 billion U.S. dollars), or 3.4 percent of its GDP, the state’s Finance Ministry said on Sunday.
The deficit figure, for the period between December 2022 and November 2023, is 31.99 percent higher than the deficit reported a month ago, which referred to the November 2022-October 2023 period.
For a year-over-year comparison, the Israeli budget registered a surplus of 7.5 billion shekels between December 2021 and November 2022.
The ministry noted that the deficit surge was due to an abnormal increase in expenditures alongside a decrease in state revenues, both caused by the ongoing conflict between Israel and Hamas.
Israel’s government expenditures in November increased by 29.56 percent year-on-year, reaching 46.9 billion shekels, while revenues totaled 30.3 billion shekels, a decrease of 12.93 percent compared to the same period last year.
The decrease in revenue was due to a decline in consumption and real estate transactions after the conflict, along with postponements and reductions in tax payments to help businesses and individuals during the conflict.