Israel | The state budget deficit in 2024 was 6.9%, 100 billion shekels were spent on the war

The first state budget for 2024, approved in the spring of 2023, provided for a state budget deficit of 0.9%. The fourth state budget for 2024, approved in December 2024, provided for a deficit of 7.7% of GDP.

According to the Central Bureau of Statistics, the government ended 2024 with a deficit of 6.9%, 16 billion shekels less than what was included in the latest version of the state budget.

The reduction in the state budget deficit was achieved by increasing tax revenues by 11 billion compared to forecasts and by 46 billion shekels compared to 2023 (nominally, excluding inflation).

Among other things, additional tax revenues are associated with the expected increase in the tax on electric vehicles and an increase in VAT, which actually shifted part of the tax revenues from the beginning of 2025 to November-December 2024.

According to the chief auditor of the Ministry of Finance, Yaheli Rotenberg, in 2024, direct expenditures on the war from the state budget amounted to 100 billion shekels. Another 14 billion shekels to pay compensation for direct damages went from the Tax Administration’s compensation fund.