Israel Spends 75% Less Per Capita on Families Than Developed Nations
Translated & summarized from Walla by baba
A new study by the Arlozorov Forum shows Israel spends 75% less per capita on families and children than the OECD average, creating a NIS 53 billion gap. Overall civilian spending is NIS 205 billion below the average, affecting education, healthcare, and welfare. This long-standing policy forces citizens to cover essential services privately, contributing to financial hardship for many families. The study argues that even accounting for defense spending, Israel's civilian expenditure remains significantly lower than developed nations.
The story in 6 lines · by baba
- Israel spends 75% less on families and children than the OECD average, a NIS 53 billion gap.
- Overall civilian spending in Israel is NIS 205 billion less than the OECD average.
- Deficits in education and healthcare push citizens to private services, widening inequality.
- High defense spending is not the sole reason for low civilian expenditure, study finds.
- Low civilian spending is a decades-long policy, not just a current government issue.
- Citizens' out-of-pocket expenses for services are increasing due to public underfunding.
A new study by the Arlozorov Forum reveals that Israel spends significantly less on families and children compared to other developed nations, with a 75% deficit against the OECD average. When adjusted for purchasing power, Israel's public expenditure on individuals aged 0-19 is approximately NIS 8,140 per person, starkly contrasting with the OECD average of NIS 32,704. Even after accounting for Israel's higher birth rate, this creates a budgetary gap of NIS 53 billion.
The research, conducted by Shira Biblash and Yoni Ben Basat, indicates that Israel's overall civilian expenditure in 2025 was NIS 205 billion less than the OECD average, representing 9.6% of its GDP. This deficit spans crucial sectors including education, healthcare, welfare, and infrastructure, meaning citizens often have to cover these costs privately. For instance, in welfare and national insurance, Israel spends NIS 50 billion less than the OECD average, with a particularly large gap in aid for families, children, and the elderly.
In education, the gap in 2024 reached NIS 32 billion after adjusting for child population. Public spending per student is about 43% lower than the developed country average, contributing to parents' reliance on private tutoring and supplementary learning. Similarly, a NIS 13 billion deficit in public healthcare spending pushes those who can afford it towards private medicine, exacerbating inequalities.
The study challenges the common explanation that high defense spending is solely responsible for the lack of funds for civilian services. Even if other developed countries matched Israel's defense spending relative to GDP, Israel's civilian expenditure would still be NIS 89 billion below the OECD average. Furthermore, defense and interest expenditures as a percentage of GDP have decreased in Israel since the 1980s, yet civilian budgets did not see a corresponding increase.
Researchers conclude that this low civilian spending is a long-standing policy, not exclusive to the current government. The study emphasizes the need for a significant and sustained increase in public spending on citizen services, as the current savings are directly impacting citizens' pockets and contributing to financial struggles for many families, despite overall economic growth.
