Israel's October Budget Deficit

JERUSALEM (Reuters) – Israel posted a budget deficit of 11.2 billion shekels ($3.0 billion) in October, according to the Finance Ministry. This deficit is attributed to high expenses incurred during the wars with the Palestinian Islamist militant group Hamas in Gaza and Hezbollah in Lebanon.

The deficit for the 12 months leading to October decreased to 7.9% of the gross domestic product (GDP), down from 8.5% in the previous period, though it still surpasses the target of 6.6% for the entirety of 2024. Despite this reduction, the ministry indicated that the deficit is expected to exceed 6.6% next year.

Expenditures related to the ongoing wars, which commenced in October of the prior year, have exceeded 106 billion shekels. Additionally, tax revenue showed a 21.3% increase in October, rising 4.2% for the first ten months of 2024.

> Exchange Rate: ($1 = 3.7279 shekels)