Israel's budget deficit ran at 2.8 percent of the gross domestic product in 2014, the Finance Ministry said Tuesday. The data suggests the deficit was in line with initial projections despite the costs of Operation Protective Edge, waged in the Gaza Strip over the summer. The ministry had originally targeted the deficit of 3.0 percent of GDP, after initially setting the 2013 deficit of 3.15 percent of GDP, and later revising the projections to 2.8 percent -- a 29.9 billion shekels ($7.59 billion) projection versus NIS 31.1 billion. The difference mainly stemmed from NIS 2 billion ($500 million) less spending, although revenue was also NIS 800 million ($200 million) below expectations. Tax income also rose 5.3 percent last year. Israel's spending priorities changed as a result of the 50-day campaign against Hamas terrorists in Gaza, as instead of pursuing a planned 6.5 percent decline in defense spending, it had to increase it by 6 percent. The measure came at the expense of civilian spending, which increased by 2.7 percent in 2014, instead of a planned 7.4 percent. The government had set 2015's deficit target of 3.4 percent of the GDP -- higher than an initial aim of 2.5 percent, and in line with various defense spending needs. The state budget, however, will not be voted on until after the March 17 elections. In accordance with Israeli law, until a new government is established and votes on a budget, the base budget from 2014 will be divided into 12 and paid out to each ministry every month.
