Despite the war, Israel’s fiscal deficit narrowed to 4.2% of GDP in the 12 months to the end of March 2026, down from 4.7% at the end of Feb 2026. Revenues from the Google-Wiz deal was primarily responsible for the reduction.
https://en.globes.co.il/en/article-israels-fiscal-deficit-narrowed-sharply-in-march-1001540190