JERUSALEM, Feb. 10 (Xinhua) -- Israel's budget deficit for the 12 months to January dipped to 5.8 percent of the gross domestic product (GDP) from 6.9 percent for the 12 months of 2024, the country's Finance Ministry said in a statement on Monday.
The figure, however, is still higher than the government's 4.4-percent deficit limit for 2025.
In January alone, there was a surplus of 23.2 billion shekels (6.5 billion U.S. dollars) in the Israeli budget, compared to a surplus of 2 billion shekels in January 2024.
The ministry attributed the latest unusual monthly surplus to a significant rise in government revenues due to tax legislative changes taking effect at the beginning of this year.
The changes include an additional 2-percent surtax on capital resources exceeding the threshold of 721,560 shekels, taxes on undistributed corporate profits ("trapped profits"), an increase in the value-added tax rate from 17 to 18 percent, and a tax rise for electric vehicles.
Israeli government revenues thus amounted to 63.1 billion shekels in January, up by 45.4 percent year-on-year.
Government expenses totaled 39.9 billion shekels last month, recording a 3.5-percent decrease compared to January 2024.
The ministry said the decrease was driven by a reduction in war expenses following the enforcement of ceasefire agreements on the Lebanon and Gaza fronts.
