JERUSALEM: Israel’s budget deficit fell to 0.04% of gross domestic product in May over the prior 12 months, its lowest level in 14 years, from 0.6% of GDP in April, the Finance Ministry said on Thursday.

Israel has a deficit target for 2022 of 3.9% of GDP.

Helped by a 20% annual rise in tax revenue in May amid a continuation of an economic rebound from the COVID crisis, Israel posted a budget surplus of 1.4 billion shekels ($420 million) for the month, bringing the surplus to 33.3 billion shekels over the first five months of 2022 and lowering the deficit as measured over 12 months.

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The deficit was its lowest level since January 2008, the ministry said. It had reached nearly 12% of GDP in early 2021 due to steep state spending to help Israel’s economy cope with the virus.