Over the past year, the deficit has risen by 8 percent • The Treasury attributes the increase in the corona crisis, which caused more than NIS 111 billion in damage • Government spending increased by 20% • State revenues decreased by 8% compared to the same period last year • Also collection amount Taxes dropped by 2%
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Photography:
Yossi Zeliger
The deficit rose by 8% during 2020, according to data published yesterday by the Ministry of Finance.
The Treasury estimates that without the corona, the deficit was lower than in 2019, partly due to the continuing budget mechanism.
In the budgetary activity of the government this year, a deficit of about NIS 160 billion was measured, compared with about NIS 52 billion last year.
However, last December the gap narrowed dramatically as the deficit amounted to 23 billion, compared to about 15 billion in 2019.
The damage caused to the Israeli economy by the corona crisis amounts to NIS 111.7 billion, a figure consisting of an increase of about NIS 68 billion in expenses and a decrease of 43 billion in expenses.
According to the State Budget and Tax Revenue, conducted by the Macro and Budget Division of the Accountant General's Division of the Treasury, the cumulative deficit at the end of the year amounted to 11.7% of GDP, compared with 3.7% at the end of 2019.
Total government spending in 2020 amounted to about NIS 478.5 billion - an increase of close to 20% compared to 2019. Excluding the effects of the corona, spending increased by 2.5%. Government ministry spending increased by 27.5% - 90% of the increase was due to spending On the corona.
Defense system expenditures rose at a relatively low rate of 2.1%.
The volume of interest payments on government debt amounted to NIS 30 billion.
The implementation of the economic plan for the corona crisis amounted to about 109 billion - reflecting about 80% of the planning.
The program is divided into 4 different categories, which include health and civilian response (104% execution), social security (85%) business continuity (72%) and acceleration and development of the economy with only 46% execution.
Total annual revenue was about NIS 318 billion - a decrease of about 8% compared to the same period last year, and about 43 billion lower compared to the pre-Corona crisis forecasts.
The amount of tax collection decreased by 2% at a nominal rate compared to 2019 and amounted to about 310 billion.
In operations to finance the deficit, the (gross) capital raising in the domestic market amounted to NIS 191 billion, while abroad it is about NIS 74 billion.
The principal repayments of the government debt amounted to 84 billion.
