Updated: Jan 15
Israel's government deficit grew by at least 3.7 % in 2019.
The 2019 budget deficit exceeded the allowable target of 2.9% of GDP, and grew to at least 3.7%, reaching $14 billion. This is $4 billion more than the maximum threshold. During 2019, total government spending was up 5.8%, interestingly enough civilian spending grew at a faster rate at more than double the rate of defense spending (7.1% vs. 2.9%).
Israeli government spent almost $13,000 for each individual living in Israel. For a family of four, government spending is more than $50,000 a year, more than the average income for a family of four with two wage earners, which stands now at $41,000. Most Israelis don't feel they are getting enough public services worth this amount. High spending also means high taxes for Israelis that already work half the year to finance government expenditures (Tax Freedom Day (TFD) fell on July 1st in 2019).
Since taxes are already high, the government will probably choose to increase its debt. The total public debt today is $220 billion, meaning that every Israeli has a debt of $25,000 from birth.
Although the Bank of Israel recommended reducing government expenses, it is doubtful that it will happen. Our government prefers to take money from hard-working Israelis or plunge them into debts than to reduce its expenses.