Government Deficit On Target

For the fiscal year 1998, the government has set a target budget deficit of 2.4 percent of the gross domestic product (GDP) NIS 9.192 billion. Last year, 1997, the government targeted a budget deficit of 2.8 percent of GDP NIS 9.744 billion and succeeded in its effort. In fact the deficit for 1997 was even lower, dropping to 2.4 percent of GDP. Government deficit plays a large part in the economic life of any country and especially so in Israel, where the State is involved in so much of the country's industry and infrastructure. One of the major reasons for the reduction of inflatio