In spite of the large rise in spending caused by the war in Lebanon, the state boasted a revenue surplus of NIS 2.6 billion over the past year.

The state has accumulated a surplus of NIS 3.1 billion over the first nine months of the year. The state was expected to suffer a deficit of three percent by the end of the year, but instead revenue is in a much better situation than at the same time last year.

In September 2006, the budget surplus hit a high of NIS 5.7 billion before dropping to NIS 2.6 billion. Increased spending, including NIS 700 million in compensation for damage caused in northern Israel during the war, as well as the holiday season and technical problems, led to the shrinking of the surplus during September.

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Spending in foreign currencies has also risen, partly due to a rise in spending abroad by the Defense Ministry.

Since the beginning of the year, tax revenue has totaled NIS 136 billion NIS, 11.2 percent more than the same period during the previous year.

Direct tax revenue like income tax has reached NIS 7.9 billion, as opposed to NIS 7.8 billion for the same period last year, while indirect deposits are lower by NIS 400 million from the previous year.

Overall, since the beginning of the year, state revenue has increased by NIS 11.8 billion over last year.