Awesome: The State of Israel has again a Financial Surplus

Who can not remember one of the panic reports from the left: Israel is threatened with a financial debacle as a state. Debt is imminent. Well, the opposite is the case. The left consistently produces fake news about Israel’s economy.

Israel’s fiscal surplus in February 2023 was awesome NIS 2.7 billion as the Ministry of Finance reported. The fiscal surplus for the 12 months ending in February 2023 amounted to NIS 3.4 billion, or 2.7% of GDP. Israel’s fiscal surplus for the 12 months ending January 2023 was 0.3% of GDP. In sum, the year 2023 see a surpluse of NIS 16.7 billion.

Of course mainstream media warns and quote Moody’s or FitchReports. However, as VonNaftali wrote, both wrote nothing about an economic catastrophe. And Israel still has its +A1 rating, outlook stable.

There are only three states worldwide that can report a budget surplus and non of them are industrialized states like Israel. These three are Qatar, Saudi Arabia and UAE.

All industrial states would be more than happy to report just a balanced budget with a “red” zero. So it is reasonable to say, that Israel is the only industrialized state of the world with a budget surplus.

According to the figures given – see below first chart – by the Ministry of Finance today Israel managed to have a surplus of NIS 9.8 billion ($2.85 billion) in 2022, which represents +0.6% of GDP (gross domestic product).

However, this surplus is powered by a 14% rise in tax revenues. Obviously, this has to be changed. Even the government owned companies make a surplus. And, the revenue of the government owned companies for the year 2022 amounted to approximately NIS 72 billion, the operating profit amounted to of about NIS 2 billion. The operating profit rate is 3% and the net profit rate is 5%.

In sum: Israel is thriving.