The deficit has fallen, state revenues from taxes continue to break records

The decline in the deficit continues: it has shrunk by 0.9% in the last year and stands at 4.6%, still higher than its rate before the corona.

At the same time, the increase in state revenues from taxes continued, which is 18.2% higher than revenues before the corona.

There was also an increase in the import of new vehicles to Israel, despite the global chip crisis

Sonia Gorodisky

08/12/2021

Wednesday, 08 December 2021, 16:29 Updated: 16:46

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The deficit in budgetary activity continues to shrink and approaches the pre-Corona crisis level.

According to data from the Ministry of Finance published today, in November the cumulative deficit in the last 12 months fell by 0.9% to 4.6%, which is NIS 70.3 billion.

This is compared to a deficit of NIS 52.2 billion at the end of 2019, which is 3.7% of GDP.

The Ministry of Finance notes that despite the continuous decline in the deficit since the beginning of the year, the deficit environment in 2021 is still high relative to the annual deficit in the decade before the corona crisis (2019-2010) which ranged between 2-4% of GDP.

This month, too, the main reason for the shrinkage of the deficit is the increase in state tax revenues as well as a decrease in expenses related to the termination of the government assistance program.

The state's revenues since the beginning of the year amounted to NIS 373.6 billion, and reflect high growth rates both compared to the corresponding period last year, of 30.7% and in relation to 2019, which was not affected by the corona crisis - a growth rate of 18.2%.

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The global shortage of chips also did not prevent the jump in the import of new vehicles to Israel (Photo: ShutterStock)

Leap in vehicle imports

According to Finance, the increase in revenue largely reflects the contribution of the high-tech industry and real estate market activity which involve significant risk components. Expenses this year totaled -421.3 billion, compared with NIS 423.4 billion in the same period last year. The decrease is primarily attributed to a decrease in the economic plan.

At the same time, the Tax Authority Today reports an increase of close to 61% in vehicle imports in November. In November 2021, imports amounted to 25,439 vehicles (private) compared to 15,806 in November 2020, an increase of 60.9%. Commercial vehicle imports amounted to 1,506 vehicles compared to 304 in November 2020, an increase of 395.4%.

the Authority explains that the surge in imports of vehicles due in imported less the same month last year, noting that compared to the average of imports in regular import is relatively high despite the global shortage of computer chips for cars. hybrid vehicles are a significant portion of imports that month, Apparently, as a preparation for raising the purchase tax for these vehicles.

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Tags

• Deficit

• New vehicle

• Import

• State revenue

• Internal Revenue Service