The report that reveals: The state will pay NIS 723 billion for budgetary pensions

The Accountant General published Israel's consolidated financial statements for 2025, revealing a pension liability of NIS 723 billion, a deficit of NIS 1.7 trillion between assets and liabilities, and a cumulative cost of NIS 231 billion for the War of Resilience in 2023-2025.

The Accountant General at the Ministry of Finance, CPA Michal Abadi-Boyango, published today (Tuesday) the consolidated financial statements of the State of Israel for 2025. The statements consolidate the financial activity of 209 government entities. The reports show that total state assets amount to approximately NIS 2,167 billion, while total liabilities stand at approximately NIS 3,903 billion – a gap of about NIS 1.7 trillion. The largest component on the liabilities side is domestic and foreign loans totaling approximately NIS 1,464 billion, followed by the National Insurance Institute's obligations to insured parties (NIS 1,286 billion) and liabilities for employee rights (NIS 759 billion). One of the prominent figures is the scope of the budgetary pension liability, which stands at the end of 2025 at approximately NIS 723 billion, compared to NIS 716 billion at the end of 2024. The increase is due to indexation and interest accrual, offset by pension payments. The reports include extensive reference to the effects of the War of Resilience. In 2023-2025, the government spent about NIS 231 billion on war needs, of which NIS 166 billion on defense expenses, NIS 27.3 billion on compensation, and NIS 37.9 billion on rehabilitation and civilian expenses. This amount does not include 2026 expenses or lost tax revenues. Spending on benefits for victims of hostilities rose to about NIS 3.6 billion in 2025, with the cost of benefits for disabled victims of hostilities surging ninefold since before the war. The compensation fund is being depleted – after withdrawing about NIS 37 billion from it until September 2026, only about NIS 2.8 billion remains. Finance Minister Bezalel Smotrich said the reports reflect the strength of Israel's economy. The Accountant General emphasized the need for controlled fiscal management alongside continued investment in infrastructure, housing, and technology.