According to the Finance Ministry, Israel's budget deficit for the 12 months to April narrowed to 5.1 percent of gross domestic product (GDP). While this marks an improvement from the 8.5 percent deficit recorded by the end of September 2024, it remains above the government's target of 4.9 percent of GDP.

The ministry's statement released on Monday also indicated that in the first four months of 2025, Israel recorded a budget deficit of 7.2 billion shekels (2.02 billion U.S. dollars). This is a significant reduction compared to the 38.1-billion-shekel deficit during the same period in 2024. The improvement is primarily attributed to a 25-percent year-on-year increase in tax revenues during the period.

Government spending from January to April reached 202.8 billion shekels, reflecting a 3.9 percent year-on-year increase. The ministry clarified that the rise in spending was mainly due to elevated defense expenditures related to ongoing conflicts, as well as a general increase in expenditures outlined in the new annual budget.