The Tax Authority expects a record NIS 192 billion in tax collection this year, nearly NIS 9 billion more than the government's target. According to revised estimates, NIS 96 billion in taxes will have been collected for the first half of the year ending today.
Cautious estimates for the next six months forecast similar tax revenues.
The NIS 9 billion in excess revenues for the period from January through June will reduce the debt-to-GDP ratio rather than funding increased government spending, at a time when governments in most of the developed world have been watching debt-to-GDP ratios rise.
The Finance Ministry and Tax Authority projections for the upcoming two-year budget are high: NIS 203 to 204 billion in 2011, assuming 3.8% growth, and NIS 215 to 216 billion in 2012, with an assumption of 4% growth. The treasury is projecting at most a 4.5% budget deficit this year.
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