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Israel Budget Deficit Shrinks Most in August Since Pandemic

Israel Budget Deficit Shrinks Most in August Since Pandemic

Israel’s budget deficit narrowed by 1.2 percentage points in August, its highest monthly drop since the start of the coronavirus pandemic. 

The 12-month trailing deficit shrank to 8.0% of gross domestic product, down from 9.2% last month, according to a Finance Ministry report released on Monday. The Israeli government’s proposed budget deficit target for 2021 is 6.8% of output. 

Israeli Budget Passes First Reading in Knesset

The August deficit stood at 1.1 billion shekels ($342.7 million), while the trailing deficit stood at 45.5 billion shekels.

Government expenditure up to the end of August stood at 310.3 billion shekels, up 5.5% on the year, owing mainly to the Israel’s pandemic relief program. As a percentage of GDP, it declined by 0.8%, its biggest monthly drop since the start of the pandemic last year.

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