MONGABAY.COM
Mongabay.com seeks to raise interest in and appreciation of wild lands and wildlife, while examining the impact of emerging trends in climate, technology, economics, and finance on conservation and development (more)
WEEKLY NEWSLETTER
|
|
Israel
Index
From 1961 to 1983, government expenditures grew far more
rapidly than Israel's GNP, primarily because of the sharp increase
in defense outlays from the latter half of the 1960s through the
1970s. Taxation was insufficient to finance the increase in
government spending. Although gross taxes increased, net taxes
declined continuously during the period. To meet the deficit, the
government resorted to domestic and foreign borrowing.
By the mid-1970s, the government increasingly relied on foreign
sources to finance the domestic deficit. These growing debts were
equivalent to almost 14 percent of each year's GNP, during a time
when GNP was growing at less than 2 percent a year.
In the second half of the 1970s, the tax system collected
approximately 47 percent of GNP, compared with 35 percent in the
1960s and 41 percent in the first half of the 1970s. This rise
occurred mainly in direct taxes and taxation of domestically
produced goods, while taxes on imports declined by a small margin.
During FY 1981, direct taxes represented 25.7 percent of GNP; they
were 14.3 percent of GNP in FY 1961. Taxes on domestic production
represented 12 percent of GNP in FY 1981, a decline from the FY
1961 high of 13.9 percent. The introduction of the value-added tax
on both domestic and foreign goods added a tax base of 8.7 percent
of GNP in FY 1981.
In FY 1986, income taxes collected represented 33 percent of
GNP. Value-added taxes represented 20 percent of GNP and customs
duties represented 4 percent of GNP. In late 1987, the government
announced plans to revamp the tax structure in the light of the
1985 Economic Stabilization Program
(see The Economic Stabilization Program of July 1985
, this ch.).
Data as of December 1988
|
|