Israel budget deficit spikes in November due to Gaza war expenses
2023.12.10 06:57
© Reuters. An Israeli soldier gestures while riding in a military vehicle, amid the ongoing conflict between Israel and the Palestinian Islamist group Hamas, near the border with Gaza, in southern Israel, December 9, 2023. REUTERS/Athit Perawongmetha
JERUSALEM (Reuters) – Israel posted a budget deficit of 16.6 billion shekels ($4.5 billion) in November, the Finance Ministry said on Sunday, citing a jump in expenses to fund Israel’s two-month old war with Hamas militants in the Gaza Strip.
As a percentage of GDP, the deficit over the prior 12 months rose to 3.4% in November from 2.6% in October, it said.
A ministry source said the deficit for 2023 would end around 4% of GDP.
The ministry noted that revenue fell 15.6% last month, partly due to tax deferments as a result of the war that began on Oct. 7.
Israel’s deficit in October was 22.9 billion shekels and in November 2022 it was 1.7 billion.
($1 = 3.7033 shekels)
