Israel’s fiscal deficit narrowed to 4.8% of GDP in the 12 months to the end of July 2025, reflecting a deficit of NIS 100 billion, Minister of Finance accountant general Yali Rothenberg reports. The fall in fiscal deficit has thus resumed after it fell for eight consecutive months before remaining unchanged at 5% at the end of both May and June.
In July itself, there was a fiscal deficit of NIS 4.8 billion compared with a deficit of Nis 4.8 billion in July 2024. The deficit was Nis 37 billion in the first seven months of 2025, half the deficit of almost Nis 72 billion in the corresponding period of 2024, in the early stages of the war.
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The improvement in the deficit is driven mainly by state revenues, not spending. The flow of cash to the state coffers is still recording impressive growth – total state revenues since the start of 2025 amounted to roughly NIS 324 billion, up 16.6% from the same period in 2024. July itself was relatively strong, with revenues of NIS 48.1 billion, compared with NIS 40.9 billion in July 2024..
On the expenditure side, the government spent NIS 52.9 billion in July, up about NIS 3.4 billion from July 2024. Since the start of the year, spending has totaled about NIS 361 billion, up from about NIS 350 billion in the same period last year – up 3.1%. This is at a time when, according to budget planning, government spending was supposed to stabilize and even fall slightly.
Published by Globes, Israel business news – en.globes.co.il – on August 11, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
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