Finance Ministry Officials Clash With Smotrich Over Torah Study Basic Law Costs

Significant disagreements have emerged between Finance Minister Bezalel Smotrich and the professional leadership of the Finance Ministry regarding the upcoming Basic Law on Torah Study, expected to pass in the Knesset soon. Smotrich claims the law will have no budgetary cost, while the Finance Ministry's legal advisor, Attorney Dudi Kopel, argues in a legal opinion that it will cost billions of shekels annually. Many senior Finance Ministry officials support Kopel's position, warning that the law will impose a heavy financial burden on the state budget and necessitate further cuts to civilian ministries' budgets.

The Finance Minister views the Basic Law as a general constitutional law that should not be assigned future budgetary costs, especially over multiple years. Conversely, the Finance Ministry's legal bureau insists that the high costs must be considered when legislating such a fundamental law. The law is expected to generate significant budget demands, particularly from the defense sector, due to its impact on the future integration of Haredim (ultra-Orthodox Jews) into the army and workforce.

The law will require a substantial increase in reservist recruitment, as approximately 90,000 Haredim currently exempt from military service will be affected. Additionally, it will necessitate expanding benefits and rights for Torah scholars, leading to the diversion of funds from other essential state budgets. Israel's current state budget stands at 699 billion shekels, and officials fear the law will cause budget overruns either this year or in the near future.

Senior Finance Ministry figures have stated that the law conflicts with sound economic policy, especially given security forecasts that anticipate massive Haredi recruitment and increased reservist mobilization. Despite the legal opinion and internal opposition, Smotrich is expected to back the Basic Law alongside his party, even if it costs billions annually, effectively disregarding the Finance Ministry's legal counsel once again.