Based on initial estimates of the Managerial Information Unit in the Accountant General's Department, the government in August had a NIS 3.2 billion deficit in its budget activity and a NIS 2.9 billion deficit in financing activity, including net credit granted.

In domestic activities the government had a NIS 3.0 billion deficit, while in external activities it had a deficit of NIS 0.2 billion.

Since the beginning of the year budget activities have accumulated a NIS 7.3 billion deficit, compared to a NIS 14.9 billion deficit in the same period last year.
The sustained downward trend in the accumulated deficit over the last 12 months continued this month as well, bringing the accumulated deficit at the end of August to NIS 22.6 billion.

Based on the approved budget, an annual deficit of NIS 25.2 billion is planned for 2011.

Expenditures in August totaled NIS 20.9 billion. Net of credit granted, government ministry expenditures for August totaled NIS 18.4 billion, equal to the average for the previous two months including the June and July seasonal expenditures (convalescence pay and clothing allowance for government employees). Interest payments and principal repayment to the National Insurance Institute totaled NIS 2.5 billion.

Government ministries expenditures since the beginning of the year totaled NIS 137.5 billion, a 4.7% increase over the same period last year. The original annual budget for 2011 included a planned increase of 7.4% in ministry expenditures compared to the original budget for 2010.

Expenditures of the civil ministries rose by 7.0% while those of the Ministry of Defense decreased by 0.7% compared to the same period last year.

The performance rate of ministries expenditures from the original budget until August is 61.1%, nearly one percentage point lower than the average performance rate until August in recent years.

Tax revenues in August totaled NIS 16.6 billion, up from NIS 15.1 billion in August of last year. Direct tax revenues (income tax) accounted for NIS 8.4 billion, compared to NIS 7.3 billion in August of last year, and indirect tax revenues (customs and VAT) accounted for NIS 7.9 billion, compared to NIS 7.4 billion.

Tax revenues since the beginning of the year totaled NIS 142.6 billion, constituting 66.8% of the annual budget planning. This amount compares with tax revenues of NIS 129.6 in the same period last year and represents a 10.0% nominal increase in collection over last year.

In domestic and external financing activity, the government recorded in August negative net capital funding of (-) NIS 1.6 billion. Net capital funding since the beginning of the year was a negative (-) NIS 2.9 billion.

Receipts from the sale of land amounted to NIS 0.3 billion in August, and to a total of NIS 3.8 billion since the beginning of the year.

The government's bank balances decreased in August by NIS 4.3 billion as a result of budget activities (deficit and its financing).

Below is a summary of the data.