Israel's 2023 Education Spending Revealed, But Data Lags Behind Current Needs
Translated & summarized from Bizportal by baba
Israel's Central Bureau of Statistics released education spending data for 2023, showing national expenditure at 7.1% of GDP, above the OECD average. However, due to a younger population, per-student spending in Israel lagged behind the OECD average in most educational levels, particularly higher education. The data, not fully updated until October 2026, highlights a greater reliance on private funding, especially for higher education. The report does not reflect current conditions or budget changes since 2023.
The story in 5 lines · by baba
- Israel spent 7.1% of its GDP on education in 2023, exceeding the OECD average of 5.3%.
- Israel's young demographic structure means more students per capita, impacting per-student spending.
- Per-student spending in Israel was below the OECD average in pre-primary, secondary, and higher education.
- Private funding covers a larger share of higher education costs in Israel than the OECD average.
- The released 2023 data is significantly delayed and may not reflect current educational system conditions.
Israel's Central Bureau of Statistics (CBS) has released data on national spending on education for 2023, though the figures are significantly delayed, with the full report not expected until October 2026. The data provides a snapshot of past spending, which may not reflect the current state of the education system due to changes in budgets, economic realities, and educational needs since 2023.
The report defines "national expenditure on education" broadly, encompassing public and private sources across various educational institutions, making it useful for international comparisons but not indicative of current available funding or budget changes since 2023. While the data is relevant for understanding the system's structure, it offers limited insight into its present condition.
In 2023, Israel's national spending on educational institutions represented 7.1% of its GDP, higher than the OECD average of 5.3%. However, this figure is influenced by Israel's demographic structure, with 43% of its population aged 0-24, compared to the OECD average of 28.6%. This means Israel must fund a larger student population relative to its economy.
When examining per-student spending, Israel's figures are less favorable. Except for primary education, spending per student in Israel fell below the OECD average. In pre-primary education, spending was $7,104, nearly half the OECD average of $13,904. Higher education spending per student was $14,966, compared to the OECD average of $22,878.
Government funding's share in Israel's education expenditure was 79.9%, lower than the OECD average of 82.9%. Private funding played a more significant role, especially in higher education, accounting for 58.6% compared to the OECD average of 32.9%. Government spending per student in higher education was particularly low at $6,202, versus the OECD average of $15,960.
The data indicates that while Israel allocates a substantial portion of its GDP to education, its young population results in lower per-student spending in most educational levels. A larger burden, particularly in higher education, falls on private sources. The current report does not address the significant changes that have occurred since 2023, which will be the crucial question when the updated data is released in October 2026.
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