Hidden Funding Mechanisms in Israel's 2025 Budget
A recent investigation by the Israeli economics newspaper Calcalist has unveiled that the proposed 2025 state budget includes deceptive financial practices aimed at securing substantial funding for Haredi religious education institutions. Despite apparent cuts in their budgets, the government is reportedly utilizing coalition funds to allocate billions of shekels to these institutions, a move designed to mitigate public backlash amid ongoing economic challenges stemming from recent conflicts in Gaza and Lebanon.
The preliminary vote on the budget is scheduled for Sunday, amidst widespread scrutiny of its implications. The proposed budget for Torah schools shows a drastic reduction to NIS 367 million (approximately $95 million) from NIS 1.7 billion (about $442 million) in the previous year. However, sources indicate that these cuts are merely superficial, with coalition funds expected to cover a deficit of NIS 5.4 billion (around $1.4 billion).
Financial Discrepancies and Teacher Salaries
The Shas education network has also seen its budget decrease to NIS 860 million (about $224 million) from NIS 1.25 billion (around $325 million) last year. Nevertheless, Finance Minister Bezalel Smotrich has indicated plans to allocate an additional NIS 600 million (approximately $156 million) for salary increases for teachers within this network, a decision criticized as an unjustified priority during wartime.
Similarly, the independent education network of Agudat Yisrael received a budget of NIS 1.64 billion (about $427 million), down from NIS 2 billion (about $520 million) in the previous year. Reports suggest that these budget cuts are likely to be reversed through coalition funds just before the final vote.
Lack of Transparency and Public Trust Issues
A separate report by data scientist Or Revel-Kroizer from the Hebrew University highlights significant discrepancies in funding, revealing that religious education institutions received NIS 334 million (about $87 million) more than their legal entitlements. This lack of transparency in funding allocations raises serious concerns about the management of public resources and the potential exploitation of these funds for political purposes.
The Ministry of Finance had previously announced intentions to reform the funding system by establishing fixed budgets, but these reforms have yet to be realized. Calcalist's findings underscore the urgent need for transparency in government spending, especially during a time of economic hardship and increased military expenditure, as public trust in government priorities continues to erode.
