A successful run of eight consecutive months in which Israel’s fiscal deficit narrowed came to an end in June. State revenues and spending in June, during the Iran operation, were almost identical to June 2024. As a result the fiscal deficit remained unchanged from the end of May at 5% of GDP, NIS 103.9 billion, Minister of Finance accountant general Yali Rothenberg reports.
June itself saw the biggest monthly deficit since the start of 2025 with a deficit of NIS 16.4 billion. Since the start of 2025 a deficit of NIS 31.8 billion has accumulated, although this is just half the figure in the corresponding period of 2024.
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Since the start of the year, the Ministry of Finance has enjoyed consistent revenue growth, although this came to a halt in June with the lowest revenue – NIS 35.6 billion – of the year so far. The Ministry of Finance estimates that this is a decrease before an increase: “Following the operation in Iran and as part of the policy to aid the economy,” the Ministry of Finance explains, “during June, the option of postponing tax payments to the last days of the month was given. It is possible that this policy led to a slight postponement of taxes for the coming months.”
On the expenditure side, the government spent NIS 52 billion in June, a slight increase of about NIS 900 million compared with June 2024. Since the start of the year, spending has totaled NIS 308 billion, up 2.4% from NIS 300 billion in the corresponding period last year. This, 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 July 8, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
