The macro-economic goals of the state budget are administered in specific and complex systems which were developed in the Managerial Information Unit of the General Accountant Department under the name of "Budget Implementation – Macro Systems." The macro-economic goals are:
• Maintaining the total framework of the planned expenses,
• Adjustment of expenditure rate to the rate of the reception of incomes,
• Regular follow-up of compliance with the deficit goal,
• Planning of the financing of the deficit in order to reduce the national debt-product ratio, etc.
The importance of Macro-economic Systems
These systems, that supply and analyze information on a real-time basis, are extremely important since the government's budgetary activity and its deficit have a great influence on the state economy and determine to a large extent the directions of its development. A correct and prompt identification of undesirable developments enables the undertaking of effective corrective measures.
The Role of Budget Implementation
Budget implementation and government deficit are the most influential macro-economic parameters of the government's budgetary activity. International institutions and business corporations abroad make decisions concerning their connections with the Israeli economy according to the maintenance of the budgetary planned framework and the size of the government deficit. The Israeli economy's credit grading and its capital prices are determined to a great extent according to the accurate and reliable information concerning budget implementation: its planning, calculation and forecasting, that those systems supply.
A correct estimate and accurate forecasts of the expenditures and revenues in the state budget and of the deficit are necessary conditions for the planning of the extent of government capital recruitment needed to finance government deficit. By law, the government is not permitted to print money in order to finance its deficit, and therefore the total deficit is financed by loans (and in recent years also by privatization). Accurate capital recruitment according to the deficit saves the country hundreds of millions of shekels of interest payments thanks to the tools that correctly plan, calculate and forecast the government deficit.
The Managerial Information Unit
The Managerial Information Unit develops and implements supervision and control tools, generates and publishes data, and creates analyses, forecasts and discussion papers concerning everything that has to do with the management of the macro-economic goals of the state budget.