Six months after the second Lebanon war, it turns out the war cost NIS 10.1 billion, or 1.6% of GDP. Ministry of Finance budget performance data indicate that the Ministry of Defense budget rose to an all-time high of NIS 53.5 billion in 2006, amounting to 8.6% of GDP.
The original 2006 defense budget was NIS 43.4 billion. Defense spending amounted to 24.5% of total government spending and 30.2% of spending by all ministries.
The shekel’s appreciation against the dollar and deflation lowered the government’s interest payments and credit subsidy by 1.7%, or NIS 693 million. Interest payments and credit subsidy totaled NIS 41.5 billion in 2006, compared with NIS 42.2 million projected in the budget.
A breakdown of government spending by ministries shows that welfare ministries spent NIS 82 billion in 2006, 37.5% of total spending. Administrative ministries spent NIS 29.5 billion, 13.5% of total spending, and economic ministries spent NIS 11.9 billion, 5.5% of total spending.
Published by Globes [online], Israel business news - www.globes.co.il - on January 11, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006