Managing the Fiscal Policy Goals


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	Surplus/Deficit excluding Credit (net)

	The surplus or deficit of the government expresses the difference between the government's total expenditures on commodities and services and its revenues due to tax collection and the selling of commodities and services. Sometimes we do not include in the deficit the government's activity regarding credit lending and repayments of credit. The government's deficit excluding this activity is called Surplus/Deficit excluding Credit (net). Domestic Surplus/Deficit: The difference between the government's domestic expenditures and its domestic revenues. Surplus/Deficit Abroad: The difference between the government's expenditures abroad and its revenues abroad.


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	Revenues and Expenditures

	Revenues • Domestic revenues: Revenues from direct and indirect tax collection, fees collection for services rendered by the government, collection of refunds on capital and interest for loans given by the government (e.g. mortgages), incomes from royalties from government enterprises, royalties and dividends from government corporations and deposits of the national insurance institute's operational surpluses. • Revenues abroad: The American government's aid grants, revenues from interest on government investments abroad, profits from the Bank of Israel. Expenditures • Local Expenditures: Expenditures of the government ministries for purchasing commodities and services; salary payments, transfer payments, subsidies, investments, interest payments and credit lending; loans given by the government – especially mortgages. • Expenditures Abroad: Purchases abroad, salary payments for the state's representatives abroad, interest payments.