As 2022 draws to a close, Israel aims to end the year with a remarkable budget surplus, with the balance at the end of November totalling NIS 28.9 billion. Despite the fact that the last three months finished in a deficit, the nation’s impressive budgetary advances for the first eight months allow it to complete the year in surplus for the first time since 1986.
According to data from the Ministry of Finance, Israel reported a budget deficit for the third consecutive month in November, with government expenditure exceeding state revenues by NIS 1.2 billion.
Since the start of the year, the state’s revenues have totalled NIS 427.9 billion, exceeding all projections, while the government spending amounted to NIS 398.9 billion. Nonetheless, the final data for the year is expected to be released in February, at which point we will know for certain how well the national budget was managed in 2022.
Prior to a year ago, Israel was still dealing with a 48 billion NIS fiscal deficit. Despite expenses outpacing the tax revenue in the last three months, the budgetary balance at the end of November is seen as a remarkable success for the economy. This is especially true given the economic challenges and that the initial forecast for 2022 expected a fiscal deficit of around NIS 65 billion. However, at this point, all predictions appear to have been wrong as Israel’s financial account will likely complete the calendar year with a sizable gain.