Budget Deficit

The Ministry of Interior contacted the Bnei Brak Municipality and issued an ultimatum to achieve a balanced budget by the end of the year, while threatening to take measures. The municipal management rejected the claims, stating that the letter was not coordinated and that the year would end with a full financial balance.

The Congressional Budget Office updates its deficit estimate for fiscal year 2026 to $2.1 trillion, following a sharp decline in customs revenues. Julius Baer economists analyze the implications for the markets. Also: leadership changes at the Central Bank of Indonesia.

The Cleanliness Fund under the Ministry of Environmental Protection is facing a 4 billion shekel deficit. The ministry has stopped publishing financial reports, and commitments have exceeded the fund's revenues for the past 8 years.

Benjamin Netanyahu seeks to increase the defense budget for the next 13 years without identifying funding sources. Experts warn that this strategy increases debt and risks, undermining Israel's fiscal credibility.

President Vladimir Putin has given the green light to sell 30.4% of the government's shares in Sheremetyevo Airport. However, Russia is expected to retain the "golden share" to block management decisions.

An S&P report highlights that Israel functions as a 'super-economy' with AAA-level metrics, yet its rating remains at A due to government fiscal policy. Structural deficits and rising debt levels overshadow the business sector's strong performance.

The Ministry of Finance is exploring a reduction in mandatory pension contributions to increase net salaries and cover the war-induced budget deficit. Experts warn this could jeopardize the financial security of future retirees.

The war has pushed Russia into a deficit of about $74 billion. To bridge it, the government attempted to raise funds through bonds but failed. Meanwhile, Ukraine is increasing pressure on Russian infrastructure and logistics.