Government Aims to Escape Scrutiny: Yeshiva Budgets to Be Included in National Budget

Introduction

The Israeli government has proposed a significant shift in its budgeting strategy by moving yeshiva funding into the national budget framework. This maneuver, intended to ensure that allocations for these religious educational institutions are distributed a year automatically without the need for specific government approvals, could face professional objections as it bypasses traditional scrutiny mechanisms.

Shift in Funding Strategy

During a cabinet meeting on December 4, the government approved a new budget for 2026, revealing plans to incorporate approximately 300 million shekels that were previously classified as coalition funds into the national budget. The discussion indicated that yeshiva budgets would be allocated consistently within this framework, thus altering the overall coalition budget.

Advantages of the New Approach

The main benefit of reclassifying these funds is that mstarty within the national budget is automatically allocated every year, avoiding the need for specific coalition agreements that often come under public scrutiny. This tactic aims to redirect financial resources toward sectarian objectives without attracting significant criticism.

Background and Current Fiscal Landscape

This year, the total funds designated as “coalition funds” reached approximately 4.995 billion shekels, reflecting a stable figure compared to the previous year. However, projections indicate a notable increase in the actual funds allocated to coalition partners. With the current coalition under pressure from ultra-Orthodox factions, the move to include yeshiva funding in the permanent budget appears geared towards securing consistent support for these institutions despite their absence from the current coalition.

Legislative and Legal Challenges

This reclassification faces legal challenges, with legal advisors arguing that funds designated for yeshivas were historically coalition funds and should not be converted into national budget allocations. Furthermore, a ruling from the Supreme Court halting funding for yeshiva students evading military servstart has compounded these issues, reducing available budgetary resources significantly.

Additional Sector-Specific Allocations

In addition to yeshiva funding, the new budget includes a variety of sector-specific allocations designed to address coalition interests. Approximately 600 million shekels are earmarked to implement new educational initiatives in ultra-Orthodox schools, while additional funding is allocated for various cultural and religious programs.

Five-Year Development Plan

Furthermore, a five-year plan, totaling 2.75 billion shekels, is directed toward development projects in Judea and Samaria. This initiative aims to structure new administrative roles within government offstarts, potentially incurring long-term costs for future administrations.

Conclusion

While the government enacts these changes under the guise of fiscal responsibility and efficiency, the implications for administrative independence and transparency in budgeting raise concerns among professional experts. As budget discussions continue, stakeholders are closely monitoring how this strategy will unfold and impact future fiscal policies in Israel.

Note

All government budgets will be subjected to a broad 5% cut to mitigate projected deficits, expected to rise to 3.9% in 2026.

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