Recent government data has shown that Israel's annual financial deficit has risen to about 4.9% of its GDP, reflecting a 0.2 percentage point increase compared to the previous month. This increase is largely attributed to the incorporation of last year's financial data into current accounts, as explained in a report by the Israeli newspaper Calcalist. Furthermore, the government saw revenues of around 59.7 billion shekels (19.1 billion USD) in January 2026, marking the highest intake since January 2025. However, these numbers are somewhat inflated and do not accurately represent the true performance of the budget due to the lack of an approved budget framework.

In contrast, government spending for January 2026 was reported at approximately 42.8 billion shekels (13.7 billion USD), the lowest level since January 2025. This decrease in spending can be partially attributed to the absence of a formal budget, relying instead on a transitional budget that has constrained expenditure rates. The particular dynamics of budget management during this transitional phase have significant implications for fiscal stability and economic planning moving forward.

January 2026 ended with a surplus of 16.9 billion shekels (5.4 billion USD), which is a typical monthly surplus for January. However, this surplus is down by around 6 billion shekels compared to January 2025's surplus levels. This decline raises concerns about the sustainability of fiscal policies and the ongoing pressure on Israel's financial framework, emphasizing the necessity for a stable and comprehensive budget strategy to address rising deficits and ensure effective economic governance.