JERUSALEM, Sept. 9 (Xinhua) -- Israel's 12-month budget deficit surged to 8.3 percent of the country's GDP by the end of August, or 161.4 billion shekels (around 42.9 billion U.S. dollars), according to data released by the Israeli Finance Ministry on Monday.

This expanding deficit has now exceeded the government's 6.6 percent GDP target for five consecutive months, compared to an annual 4.2 percent deficit registered at the end of 2023.

The deficit increase is largely due to escalating government spending on Israel's ongoing conflict with Hamas and Hezbollah, including ammunition, fuel, equipment, maintenance, and payments to soldiers, displaced residents, and affected businesses.

By the end of August, Israel's total expenditures for the conflict had reached 96.9 billion shekels, marking a significant rise of 8.5 billion shekels from the end of July.

Total government spending has sharply risen in 2024, totaling 399.2 billion shekels by August, a 31.8 percent increase from the January-August period last year.

Total revenue from the beginning of the year grew by four percent year-on-year to 315.2 billion shekels. Enditem

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