Israel’s fiscal deficit narrowed to 4.5% of GDP at the end of November, or NIS 932.5 billion in absolute terms, according to figures released today by the Ministry of Finance’s Accountant General Yali Rothenberg. This represents a significant fall from the fiscal deficit of 4.9% in the 12 months to the end of October.
In November itself there was the smallest deficit since January 2025. In January the state reported record revenues as taxes were paid in order to avoid the new taxation in the 2025 budget. In November 2025 government spending exceeded state revenues by ‘just’ NIS 3.3 billion, only about a quarter of the fiscal deficit of NIS 12.2 billion in November 2024.
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The narrowing of the deficit was expected due to the halt in the costly fighting in Gaza, which took effect in mid-October. However, there was still no major fall in state spending last month. In November, the government spent NIS 49.1 billion, of which NIS 11 billion went to the Ministry of Defense. This compares with total expenditure of NIS 50.9 billion in November 2024, amid intense fighting.
In fact, the improvement in Israel’s fiscal deficit continues to come from the revenue side. Revenue in November was NIS 45.8 billion, up NIS 7.1 billion from November 2024..
The cash flow to the Ministry of Finance is recording impressive and consistent growth – state revenues since the start of the year have totaled NIS 503.2 billion, up 15.1% from the corresponding period in 2024.
Published by Globes, Israel business news – en.globes.co.il – on December 8, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
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