FALCON POWERS – The Ministry of Finance said on Sunday that Israel recorded a budget deficit of ten billion shekels ($2.7 billion) in May, citing increased spending due to the war it is waging with the Islamic Resistance Movement (Hamas) in Gaza.
Over the previous twelve months, the deficit rose to 7.2% of gross domestic product in May, compared to 7% in April, exceeding the full-year 2024 target of 6.6%. Spending on the war, which began in October last year, reached 70 billion shekels.
However, tax revenues jumped 19.3% in May. Tax revenue increased 0.3% during the first five months of 2024. The ministry said that due to the Passover holiday in April, around five billion shekels of tax payments were shifted from April to May.
