Israeli Finance Ministry Warns of Economic Harm from Basic Law on Torah Study

Following the government's initial approval of the Basic Law: Torah Study, the Israeli Finance Ministry issued a strong warning during a Knesset committee discussion on Sunday about the severe economic damage the law could cause if fully enacted. The ministry highlighted that prioritizing Torah study over equality could disrupt budget priorities, divert resources, and impose significant financial and legal risks on the economy. They also stressed that the law contradicts government goals to integrate Haredim into the military and workforce, potentially perpetuating military service exemptions and harming economic growth, which could force a 16% increase in direct taxes in the future.

Itzik Saidian, a PTSD sufferer and chairman of the "Eye to Eye" association, emotionally opposed the law during the debate. He argued that the highest value should be given to those who fought and were wounded in battle, emphasizing the sacrifices of soldiers who faced combat and trauma firsthand. Saidian stated that these veterans often feel forgotten by the state despite their sacrifices.

The Basic Law: Torah Study is part of a political deal between Prime Minister Benjamin Netanyahu and Haredi parties to maintain the coalition and prevent early elections. The law aims to establish Torah study as a fundamental value in Israel, counterbalancing the constitutional principle of equality. This legal framework would support future legislation exempting Haredim from military service by arguing such exemptions serve a core national value.

The government also plans to pass a law subsidizing daycare for children of military service exemptees. Final readings of these laws are expected by July 17, before the coalition's term ends. Originally, the law equated Torah scholars with IDF servicemembers, but this comparison was removed after public backlash. The current text states that Israel, as a Jewish state, highly values Torah study and those dedicated to it, recognizing their significant contribution to the nation and Jewish people.