Israel in budget deficit in another fallout post Moody’s downgrade
The credit rating agency downgraded Israel’s credit outlook due to the judicial reform controversy in the country.
Israel posted a budget deficit in March, the Ministry of Finance said on Sunday. Meanwhile, the government’s reaction to Moody’s downgrading Israel’s credit outlook on Friday has attracted criticism.
Israel reported an annual budget deficit of 300 million Israel shekels ($82.33 million) in March. The deficit refers to the previous 12 months from March of 2023, and followed nine months of surpluses. The deficit was the result of a decrease in tax revenue following "exceptional" revenue in 2022, the ministry said in a statement sent to Al-Monitor.
Taxes fell most significantly in real estate, according to the Israeli business news outlet Globes. Israel's housing market has experienced a drop in transactions in recent months, Doron Peskin reported for Al-Monitor in November.
Israel still has a budget surplus of about 1.14 billion shekels ($312.45 million) for the start of 2023, according to the ministry.
