Israeli Elections Cost Economy Nearly $1 Billion More Than Last Time

Israel's upcoming 26th Knesset elections, scheduled for October 27, are projected to cost the economy approximately 4 billion shekels (about $1.1 billion USD). This figure represents a significant increase from the previous elections in November 2022, which cost close to 3 billion shekels. The rising cost is attributed to increased wages, inflation, and a larger budget for the Central Elections Committee.

The bulk of the expense, an estimated 2.68 billion shekels, stems from the economic impact of a full day of work stoppage. This calculation, provided by the Research Department of the Manufacturers Association of Israel, considers the salaries of over 4.1 million employed Israelis across public and private sectors. The average monthly salary in the business sector is 15,776 shekels, and in the public sector, it's 11,908 shekels.

An additional 1.027 billion shekels is allocated for the Central Elections Committee's operational budget and party financing. This includes 111 million shekels for the committee's current year activities and 1.468 million shekels per Knesset member for election funding, an increase from 70% to 80% of the funding unit.

The Manufacturers Association estimates that Israeli industry alone will lose 342 million shekels on election day. The prolonged terms of recent Knessets have spared the economy the repeated costs of frequent elections, with four elections held in less than two years prior to the current four-year term.