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Finance Ministry: Last year’s fiscal deficit lower-than-expected

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Wednesday, January 26th, 2011

As reported in Port2Port: The Government deficit in 2010 totaled NIS 30.2 billion, or 3.73% of gross domestic product, compared with the original budget plan of 5.5%

The Finance Ministry reported last Thursday that the Government deficit in 2010 totaled NIS 30.2 billion, or 3.73% of gross domestic product (GDP), compared with the original budget plan of 5.5%.

In a press release the ministry attributed most of the lower-than-expected deficit to the increase in revenue, as well as lower interest expenses and higher than expected GDP growth.

The Finance Ministry noted that budget performance was 99.4% of the original budget in 2010. The Finance Ministry noted that the full budget was used, with some ministries exceeding 100% performance, including the Defense Ministry, at 105.8%.The defense budget totaled NIS 62 billion, compared with the original NIS 55 billion planned.

The Ministry of Finance also announced that direct and indirect tax revenues totaled NIS 195.4 billion in 2010. Direct tax revenues rose 7.5% to NIS 93.1 billion in 2010 from NIS 86.1 billion in 2009. Indirect tax revenues rose 7.1% to NIS 97.1 billion in 2010 from NIS 86.6 billion in 2009.