Israel’s August Budget Deficit

JERUSALEM (Reuters) – Israel posted a budget deficit of 12.1 billion shekels ($3.24 billion) in August, according to the Finance Ministry. This increase is attributed to high expenses incurred to finance the ongoing war with the Palestinian Islamist militant group Hamas in Gaza.

The deficit for the 12 months ending in August rose to 8.3% of gross domestic product (GDP), up from 8.0% in the 12 months ending in July. This is in contrast to a target of 6.6% for all of 2024.

Spending on the war, which began last October, has reached approximately 97 billion shekels. The Finance Ministry anticipates that the deficit will continue to rise through the third quarter before stabilizing back to its target.

Tax revenue showed an increase of 8.1% in August, marking a 1.9% rise over the first eight months of 2024.

(Note: $1 = 3.7384 shekels)