Israel's budget deficit has widened to NIS 123 billion or 9.1% of GDP for the 12 months ending September 2020, the Ministry of Finance reports. The deficit has been widening significantly since the start of the Covid-19 pandemic and is up from 8.1% in the 12 months ending August 31 and 'only' 3.1% at the end of February before the crisis began, Trend reports with reference to Globes.
The widening deficit was expected with the government spending NIS 70 billion on boosting the economy while tax revenues have bit hit by a similar amount. Since the start of 2020 tax collection is down 9.9%.
The deficit has widened substantially even though the government has only handed out half of the amount allocated to boosting the business sector because of the crisis. In terms of grants to companies taking back employees from unpaid leave only 17% of the NIS 2 billion allocated has been handed out.