Tax revenues reached NIS 106.8b. in the first half of this year, a shortfall of NIS 2.81b. from the government’s target – most of it due to unexpectedly low takings from income tax. However, the Treasury pointed out that June was the first month in which revenues outperformed expectations.
07/05/2012 05:09–The government set a 2012 deficit target of NIS 18.4b. when it published its original biennial budget for the years 2011-12. The Treasury estimates that the actual deficit will reach at least NIS 29.7b. by the end of the year, due to a forecast NIS 11.3b. tax shortfall. The annualized deficit continued its upward trend in June, reaching NIS 33.1b., or 3.7 percent of GDP.
The Treasury released its latest data just three days after the cabinet approved Prime Minister Binyamin Netanyahu andFinance Minister Yuval Steinitz’s controversial plan to double the 2013 budget deficit target to 3% of GDP. Netanyahu and Steinitz stated that certain taxes will be raised next year, and that the government will adopt other measures to ensure it meets both expenditure and deficit targets.
Bank of Israel Governor Stanley Fischer and Treasury Budgets Director Gal Hershkovitz are among those who have spoken out against increasing the deficit target to such a high level, with both men calling for it to be revised to 2.5%.
According to Wednesday’s report, the Treasury collected NIS 15.9b. in tax revenues in June, a 6.7% increase from the same period last year. However, capitalgains taxes on real estate dropped 37.8% in June and 29.7% for the year to date compared to the corresponding periods last year…Read More>>