{"id":26391,"date":"2025-06-10T20:00:11","date_gmt":"2025-06-10T17:00:11","guid":{"rendered":"https:\/\/reganews.co.il\/en\/?p=26391"},"modified":"2025-06-10T16:55:30","modified_gmt":"2025-06-10T13:55:30","slug":"israel-posts-strong-tax-intake-and-moderate-fiscal-progress","status":"publish","type":"post","link":"https:\/\/reganews.co.il\/en\/israel-posts-strong-tax-intake-and-moderate-fiscal-progress\/","title":{"rendered":"Israeli Economy Going Strong: High Tax Intake and Moderate Fiscal Progress"},"content":{"rendered":"<p data-start=\"304\" data-end=\"533\">Israel collected 44.8 billion shekels in May \u2013 a nearly 20% jump since the beginning of 2025. The cumulative deficit has narrowed, though it still exceeds 100 billion shekels.<\/p>\n<p data-start=\"535\" data-end=\"915\"><strong data-start=\"535\" data-end=\"570\">41.6 Billion Shekels from Taxes<\/strong><br data-start=\"570\" data-end=\"573\" \/>State tax revenues continue to rise. In May 2025, Israel collected 41.6 billion shekels in taxes, out of a total of 44.8 billion shekels in overall revenue. This represents a cumulative increase of approximately 19.5% compared to the same period last year, according to official data from the Ministry of Finance and the Israel Tax Authority.<\/p>\n<p data-start=\"917\" data-end=\"1315\">This notable growth is due in part to a 22.1% increase in direct taxes since the start of the year, especially in real estate taxes. Purchase tax and capital gains tax collections soared by 34%. VAT revenue also rose by 7% in real terms compared to May 2024. In addition, purchase tax on vehicle imports climbed by 11%, driven by an increase in both the number of vehicles and the value of imports.<\/p>\n<figure id=\"attachment_26394\" aria-describedby=\"caption-attachment-26394\" style=\"width: 724px\" class=\"wp-caption alignnone\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-26394 size-full\" src=\"https:\/\/reganews.co.il\/en\/wp-content\/uploads\/2025\/06\/2-80.webp\" alt=\"\" width=\"724\" height=\"483\" srcset=\"https:\/\/reganews.co.il\/en\/wp-content\/uploads\/2025\/06\/2-80.webp 724w, https:\/\/reganews.co.il\/en\/wp-content\/uploads\/2025\/06\/2-80-300x200.webp 300w\" sizes=\"(max-width: 724px) 100vw, 724px\" \/><figcaption id=\"caption-attachment-26394\" class=\"wp-caption-text\">Israel Tax Authority | Photo: FLASH90<\/figcaption><\/figure>\n<p data-start=\"1356\" data-end=\"1727\"><strong data-start=\"1356\" data-end=\"1393\">Deficit Shrinking, But Still High<\/strong><br data-start=\"1393\" data-end=\"1396\" \/>Alongside the strong revenue figures, the Ministry of Finance\u2019s May budget estimate presents a more complex picture: the cumulative deficit over the past 12 months stands at 5.0% of GDP \u2013 more than 103 billion shekels. This marks a slight improvement compared to April (5.1%), but it is still above the 2025 deficit target of 4.9%.<\/p>\n<p data-start=\"1729\" data-end=\"1988\">Government spending in May totaled 53.4 billion shekels. As of early June, the cumulative deficit since the beginning of the year stood at 15.9 billion shekels \u2013 a significant drop from the same period last year, when the deficit reached 48.2 billion shekels.<\/p>\n<p data-start=\"1990\" data-end=\"2298\">Overall government expenditure grew by 1.1%, defying earlier forecasts that projected a 1.6% decrease. This indicates a mild across-the-board deviation from the budget plan \u2013 primarily in administrative and social sectors. By contrast, the expected cuts to the defense budget were only partially implemented.<\/p>\n<p data-start=\"2300\" data-end=\"2569\">The Ministry of Finance noted that the increase in revenues and the moderation of defense expenditures \u2013 primarily due to lower military spending \u2013 are helping to improve the fiscal balance. However, the ministry emphasizes that caution will be necessary going forward.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The state brought in 44.8 billion shekels in May, marking a nearly 20% surge since the start of the year. The Ministry of Finance\u2019s economic report for May points to a recovery \u2013 alongside ongoing challenges.<\/p>\n","protected":false},"author":43,"featured_media":26393,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,2276],"tags":[6680,2637,6681,1619,2545,6662,6682,3556],"class_list":["post-26391","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-people","tag-budget-2025","tag-deficit","tag-fiscal-policy","tag-israel-economy","tag-ministry-of-finance","tag-money","tag-tax-revenue","tag-taxes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.7 (Yoast SEO v24.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Israeli Economy Going Strong: High Tax Intake and Moderate Fiscal Progress - REGA news<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Israeli Economy Going Strong: High Tax Intake and Moderate Fiscal Progress\" \/>\n<meta property=\"og:description\" content=\"The state brought in 44.8 billion shekels in May, marking a nearly 20% surge since the start of the year. 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