Because of the corona: the deficit increased to 8.1% of GDP | Israel Today

Since the beginning of the year, the cumulative deficit has reached an all-time high. • The reason for the negative figure: Government expenditures to deal with the crisis.

• Ministry of Finance

  Photo: 

  Dudi Vaknin

A preliminary estimate released yesterday by the Ministry of Finance shows that, as expected, government spending on the Corona crisis continues to increase the deficit - from 7.2% in July to 8.1% of GDP last August.

The deficit amounts to NIS 110.5 billion. 48.5 billion, representing approximately 45% of the entire deficit. 

government expenditure since the beginning of the year until the end of August totaled $ 292.9 billion, of which 35.5 billion earmarked for the costs of dealing with sources.

compared to the same period last year, an increase of 13.4% in expenses, but After deducting spending on the corona, there was a decrease of 0.3% - that is, the corona alone is responsible for inflating government spending. 

Respectively, the expenses of the civil ministries increased in the first 8 months of the year by about 20%, compared with a decrease of 2.2% in the expenses of the defense establishment.

Total government revenue in January-August was NIS 205.5 billion - a nominal decrease of 10.3% compared to revenue in the corresponding period last year.

Net income from real estate taxation and VAT increased last August compared to the same period last year. 

The Tel Aviv Stock Exchange was not shaken by the deficit data, and a trading day that began with sharp declines due to the declines on Wall Street over the weekend ended with gains of up to 0.37%. , And the banks' index rose by 1.2% against the background of delegations of Hapoalim and Leumi representatives who went to the UAE to sign cooperation agreements with members of the financial sector in the Arab country, which recently reached a peace agreement with Israel. 

Tomorrow will emirates workers' delegation headed by CEO Dov Kotler, and next week will take off Bay National Chairman Samer Haj Yahia and CEO of Bank Hanan Friedman. 

Stock jumped to over 5.6% yesterday in the wake of the Treasury's aid program, and share medical cannabis Tikun Olam jumped more than 7% thanks to an agreement with Super-Pharm in the amount of NIS 100 million. 

Delek Drilling's share rose by 1.5%, after the ombudsman and various government ministries reaffirmed Delek and Noble Energy's veto right over the Tamar reservoir. However, Delek's controlling shareholder, Yitzhak Tshuva, will be required to remove the veto over the Tamar reservoir within 30 The demand came from the ombudsman, the various government ministries and the Competition Authority.

This decision stemmed from an alleged conflict of interest in which Delek and Noble Energy were located - which simultaneously hold most of the holdings in the Tamar gas reservoir and 85% of the Leviathan reservoir.

The other two partners in the Tamar reservoir - Isramco and Tamar Petroleum - were interested in selling a certain amount of Tamar gas at a reduced price to the electricity company, but Noble and Delek objected and vetoed it.

According to Isramco and Petroleum, the opposition stems from the conflict of interest between Noble and Delek, and this may even amount to a criminal offense. 

The state, as stated, rejected the position of Isramco and Tamar Petroleum, meaning that the IEC will not be able to purchase gas from Tamar at this stage.

However, the state clarified to the answer that it would not be able to continue the veto, while Noble was given a period of about 15 months to settle the issue, until December 2021.