Budget Performance and State Tax Revenues – 2010 Summary
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1/25/2011
GovXShortDescription
The overall deficit, excluding net credit granted, amounted to NIS 30.2 billion, which constitutes 3.73% of GDP, compared to the deficit of 5.5% of GDP originally forcasted in the state budget.
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GovXContentSection
According to estimates made by the Accountant General's Department, the overall deficit, excluding net credit granted, amounted to NIS 30.2 billion. This constitutes 3.73% of GDP, compared to the deficit of 5.5% of GDP originally forcasted in the state budget. The calculation was made based on GDP of NIS 810.6 billion.
The explanation for the deficit being lower than the orginal budgetary plan comes largely from the revenue side; with additional contributions coming from below-budget interest expenditure and GDP being higher than forecasted in the original budget.
2010 marked a turning point in the development of the deficit: following two years at which the level of government deficit rose from zero in 2007 to 2.2% of GDP in 2008 and 5.2% of GDP in 2009, the deficit fell to 3.73% of GDP in 2010.
Although this is a preliminary estimate, it appears unlikely that significant changes will be made in the components of the deficit and the funding thereof. It is however possible that changes will be made to the internal classification and to the expenditure and revenue ceiling. The more detailed performance data are purely indicative.
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