Israel ended the first half of 2007 with an unprecedented budget surplus of NIS 5.6 billion, according to data published by the Finance Ministry Monday.

The sum was some NIS 15 billion above the NIS 9.4 deficit that had been expected by the treasury.

Three key factors contributed to the surplus: The education, health and welfare ministries have yet to have spent the second half of their annual budget; government proceeds from tax revenue were higher and the rate of privatization was faster than expected.

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The numbers raise questions over the necessity of Prime Minister Ehud Olmert's suggestion to cut another NIS 1.5 billion from the ministries' 2007 budgets.

A meeting over the suggestion was supposed to be held on Sunday, however Labor Party Chairman Ehud Olmert postponed it to allow the ministers to better prepare for the discussion.

The government's annual budget is NIS 230 billion. After tallying 2006's surplus and other added changes the government has NIS 242 million at its disposal in 2007.