During July, Israel's state revenue was 40.9 billion shekels. Total government spending was 49.4 billion, leaving a considerable deficit.
One of the great reasons for deficit is the cost of war: since the October 7 attack, Israel spent NIS 88.4 billion on national defense.
This Thursday, the Israel Ministry of Finance published a report that highlights the scope of this critical situation, defining Israel's deficit at 8.1% of the Gross Domestic Product (GDP).
Thus, July becomes the fourth consecutive month in which the government's budget limit for 2024, set at 6.6%, is exceeded.
The ministry projects the deficit will continue to expand until the end of September due to higher war spending. However, one of the conclusions of the report is that a downward trend is expected from the fourth quarter, which would allow the budget limit to be met by the end of 2024.
Additionally, July figures show an increase in state revenue compared to the same month last year.