According to the annual report of the Bank of Israel, the government has underspent its budget by up to 2.7 percent almost every year since 2002.

Israel's central bank predicts that should 2008 follow the established trend, NIS 8.1 billion will still be unspent. The said report also indicates that there has been a systematic failure to appropriately budget and spend. Serial overbudgeting, said the central bank, affects as much as 29 percent of the nation's spending plans.

The Bank of Israel reckons that the ovberbudgeting is deliberate. It believes that it is designed to allow larger reserves than would exist otherwise.

The budget of the Ministry of Internal Security is highlighted as an example. The ministry's budget has steadily risen even though the real amount it actually spends has fallen. If you enjoy reading this article, you'll surely get pointers on learning how to create a budget.