Record deficit in the Israeli budget during the past 12 months at $39.5 billion

Israel's budget deficit rose by 7.6% of GDP in the past 12 months to NIS 146 billion, or about $39.5 billion, the highest level in two decades.

The deficit is rising amid the costly and ongoing war in the Gaza Strip, Ynet reported Monday, citing an Israeli Finance Ministry report.

The finance report attributed this record deficit in the state budget to "the large expenditures of the ongoing war, payments made to residents evacuated from the contact areas, and also compensation provided to closed companies ."

The Israeli Finance Ministry expects the deficit to continue in growth rates at least until the end of the third quarter of this year, after which it is expected to decline.

The report stated that government spending last June amounted to 51.2 billion shekels ($13.8 billion), an increase of 30.9% over the same period (June) last year.

The report concluded that total government spending since the beginning of this year amounted to 300.3 billion shekels ($81.3 billion), compared to 223.7 billion shekels ($60.6 billion) for the same period in 2023.