Finance Minister Bezalala Smotrich - finally a finance minister who cannot say he received a difficult inheritance (Photo: Flash 90, Yonatan Zindel)
The Accountant General of the Ministry of Finance, Yali Rotenberg, today publishes a first estimate of the ratio of public and government debt to GDP for 2022. The debt to GDP ratio is a key indicator of the financial strength of the State of Israel and is important for determining its credit rating.
The final estimate of the debt-to-GDP ratio will be published in the annual report of the debt unit in the Accountant General's Department.
The sharp decrease in the debt-to-product ratio was due to the sharp growth of the GDP (at a rate of 6.3%) as well as the decrease in the government debt (approximately NIS 7 billion).
The year 2022 ended with a budget surplus of 0.6% of GDP which was mainly due to the extraordinary increase in state revenues this year.
In 2020, the ratio of public debt to GDP stood at 70.7%. Thus, the public debt in relation to GDP completed a cumulative decrease of about 10% in the last two years and returned to the downward path that characterized it before the Corona crisis.
Debt and GDP over the years (Photo: Ministry of Finance Spokesperson)
Minister of Finance, MK Bezalel Smotrich
: "God willing, Israel's economy continues to march forward and demonstrate its strength and strength, which is reflected in the lowering of the GDP debt ratio and in the rapid recovery from the Corona crisis.
We will continue, with God's help, to lead Israel's economy as an island of stability, with fiscal responsibility and the development of growth engines for the benefit of the State of Israel and all its citizens."
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Where are we in the table?
between Iceland and Slovakia.
And what is the average of the reference countries? (Photo: Spokesperson of the Ministry of Finance)
Accountant General, CPA Yali Rotenberg
: "The change in government debt, together with significant growth in economic activity, led to a sharp decrease in the ratio of debt to GDP.
The cumulative decrease over the past two years in the ratio of GDP debt and the return to the downward trend are of great importance in preserving financial stability and fiscal flexibility, which support the country's ranking in the challenging macroeconomic environment that is expected to accompany us in 2023 as well."
Rui Yehli Rotenberg, Hashkal.
Will he be able to keep the cash in view of the promises in the coalition agreements? (Photo: official website, Gilad Artzi)
Senior Deputy to the Accountant General and Director of the Finance Division, Gil Cohen
: "Thanks to the impressive growth of the economy, the budget surplus in the past year and efficient management of the government debt, the ratio of public debt to GDP will decrease sharply in 2022 by a sharp rate of about 7% and is estimated at about 60.9%.
In this way, the State of Israel continues to stand out positively in relation to reference countries in debt-to-GDP trends in the last decade in general and the Corona crisis in particular. A return to the debt-to-GDP environment recorded before the crisis is an important marker for the rating companies and enables fiscal flexibility, the importance of which was proven in 2020 with the outbreak of the Corona crisis in which the strength of the Israeli economy and the debt-to-GDP ratio Enabled a rapid and responsible fiscal expansion that helped the government deal with the crisis. Also, in 2022 we started implementing the reform in the bonds intended for the pension funds, which will change the mix of borrowings and allow more flexible and efficient management of the government debt."
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Bezalel Smotrich
Yali Rotenberg
