Israel posted a budget deficit of 19.2 billion shekels ($5.2 billion) in December, the Finance Ministry said on Monday, citing high expenses to finance the wars with the Palestinian Islamist militant group Hamas in Gaza and Hezbollah in Lebanon.

The deficit for all of 2024 was 6.9 per cent of gross domestic product, compared with 4.2 per cent in 2023. Nonetheless, the December figure was the lowest since March after reaching 8.5 per cent in the 12 months to September and slipping to 7.7 per cent in November.

Due to the wars, the deficit target for 2024 was 6.6 per cent.

Spending on the wars, which began Oct. 7, 2023, reached 125 billion shekels ($34.09 billion).

Tax revenue rose 27.6 per cent in December and gained 7.3 per cent in 2024.