In domestic activities the government had a NIS 0.2 billion deficit, while in external activities it had a deficit of NIS 0.7 billion.

From the beginning of the year until July, budget activities accumulated a NIS 10.9 billion deficit, out of NIS 42.9 billion in the original budget planning for the year, and compared to NIS 18.4 billion in the same period last year.

The accumulated 12-month deficit (from August 2009 to July 2010) rose to NIS 32.5 billion, compared to NIS 31.3 billion in the previous month (adjusted figures).


Expenditures in July totaled NIS 20.8 billion. Net of credit granted, government ministry expenditures for July totaled NIS 18.9 billion, 14.0% higher than the average for February- June, due to an increase in transfer payments of the social ministries (financing of convalescence pay in indirect wage payments), payment of clothing allowance for government employees and higher expenditures of the economic ministries, in particular the
Ministry of Transport and Road Safety and the Ministry of Industry, Trade and Labor. Interest payments and principal repayment to the National Insurance Institute totaled NIS 1.9 billion.

Since the beginning of the year, government ministry expenditures have totaled NIS 113.9 billion, a 4.2% increase over the same period last year.

The original annual budget for 2010 included a planned increase of 3.1% in ministry expenditures compared to the budget for 2009. Expenditures of the economic ministries (mainly the Ministry of Transport and Road Safety) are trending downward compared to the previous year. The performance rate of ministry expenditures from the original budget until July is 54.4%, 0.8% higher than the average performance rate for expenditures until July in the past five years.

Tax revenues totaled NIS 19.0 billion, compared to NIS 18.1 billion in July of last year (which was an exceptional month in terms of tax collection). Since the beginning of the year, tax revenues have totaled NIS 114.5 billion, constituting 62.5% of the original budget planning, and compared to NIS 102.7 billion for the same period last year.

In July the government had positive net capital funding activity totaling NIS 0.8 billion, as well as receipts of NIS 0.6 billion from the privatization of Israel Discount Bank. The government's bank balances grew by NIS 1.0 billion as a result of budget activities (deficit and its financing).