Who gets the main benefits in Israel – analysis
A report by Israel's Ministry of Finance revealed a colossal imbalance in the distribution of state benefits: ultra-Orthodox families receive discounts on daycare, after-school programs, municipal tax (arnona), and transportation at rates several times higher than the rest of the population. Experts attribute the disparity to a calculation method that does not account for labor potential and propose linking aid to employment and military service.
A recent report by the Budget Division of Israel's Ministry of Finance published data on the distribution of state benefits, showing a huge imbalance in favor of the ultra-Orthodox sector. According to the analysis, the chances of ultra-Orthodox families receiving a daycare discount are 7 times higher (28% vs. 4%), and for after-school programs, also 7 times higher (64% vs. 9%). A discount on municipal tax (arnona) is obtained by 72% of ultra-Orthodox families compared to 17% of others, and 95% of ultra-Orthodox families use subsidized transportation versus 23%. Finance Ministry experts believe the root of the problem lies in the method of calculating aid based on per capita income, which does not consider whether a person has the ability to work but consciously refuses. The situation began to change after the events of October 7 and the High Court of Justice's decisions on drafting yeshiva students: the introduction of sanctions against draft dodgers led to a 53% increase in the number of recruits from the ultra-Orthodox community in 2025. The report's authors propose providing aid only to families where both spouses work at least one and a half full-time positions, recalculating per capita income considering reduced expenses for each subsequent child, and withdrawing support from those who evade military service.