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Ongoing Story· Day 41

Israel's Upcoming Knesset Elections to Cost State Budget 4 Billion Shekels

17 developments

IcePolitics

Israeli Parties Burn Millions on Campaigns, Burdening Taxpayers

Translated & summarized from Ice by baba

BusinessCharged tone

Hebrew · 1 newsroom

Israeli political parties spent over 1.2 billion shekels on elections between 2019 and 2022, with the Likud party alone spending approximately 57 million shekels in the 2022 elections. The majority of this funding, nearly all of it, comes from state budgets, effectively making taxpayers responsible for campaign costs. Parties take out loans and advances based on poll numbers, leading to significant debts when electoral results fall short of expectations. These debts can reach hundreds of millions of shekels collectively, with some being written off at public expense.

The story in 6 lines · by baba

  • Israeli parties spent over 1.2 billion shekels on elections from 2019-2022.
  • The Likud party spent approximately 57 million shekels on its 2022 election campaign.
  • Nearly all (99.7%) of party funding in Israel comes from state budgets.
  • Parties collectively owe between 150-190 million shekels to the Knesset.
  • Campaign spending is primarily allocated to advertising, personnel, and consultants.
  • Taxpayers ultimately bear the cost of party debts when campaigns fail.

Israeli political parties spend astronomical sums on election campaigns, with the ruling Likud party being the biggest spender. In the most recent elections for the 25th Knesset in 2022, the Likud party spent approximately 57 million shekels on its campaign. During the intense political battles of 2019-2020, Likud's expenditures approached 70 million shekels for a single election cycle. These figures also place the Likud at the top of the debt list, owing nearly 50 million shekels to the Knesset treasury.

Other major parties also incur significant costs. Yesh Atid spent about 40 million shekels in the 2022 elections. The united Blue and White party's 2019 campaign cost over 60 million shekels, leaving a substantial financial deficit when the party later split. Mid-sized parties like Shas, National Unity, Yisrael Beiteinu, and Religious Zionism typically spend between 12 to 25 million shekels per campaign.

Collectively, Israeli election campaigns cost between 250 to 290 million shekels each, with the peak of 288.6 million shekels recorded for the 22nd Knesset. Over the five election rounds from 2019 to 2022, parties collectively spent over 1.2 billion shekels. The total debt owed by these parties to the Knesset has reached between 150 and 190 million shekels.

The majority of campaign funds, approximately 44%, are allocated to advertising and digital outreach, including social media promotion, billboards, and video production. Another 27% goes towards personnel, including campaign staff, poll workers, and extensive transportation on election day. Approximately 15% is spent on surveys and consultants, while 13% covers operational and administrative costs like office rentals and legal fees.

Unlike in countries like the United States where campaigns rely heavily on large donations, Israeli law limits individual contributions to a few thousand shekels. Consequently, about 99.7% of party funding comes from state coffers, meaning taxpayers foot the bill. The system allows parties to take advances and loans from the Knesset based on poll predictions. If a party overspends based on optimistic projections and fails to achieve its expected electoral results, it is left with a large debt to the state. This debt is often spread over decades, and in cases where parties disappear, the debt is sometimes written off, with the public absorbing the financial loss.

IceOther · Tel Aviv

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