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NIS 92,000 per dayan in the rabbinical court, NIS 8,000 per teacher: the budget pension bomb

The 2020 financial statements were supposed to cover the deficit due to the costs of dealing with the corona crisis, but they revealed a much more dangerous disease: the budgetary pension that threatens not only risk groups but all Israeli citizens.

These are the sectors that enjoy the highest pensions from the state budget

Tags

• financial reports

• budget

• Corona

• Budgetary pension

• Dayanim

• Teachers

Sonia Gorodisky

Tuesday, 27 July 2021, 08:19 Updated: 13:56

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The financial statements of the State of Israel published today (Tuesday) reveal a bleak picture regarding the budgetary pension in Israel. The reports raise dismal gaps between different stakeholders, in a way that could hurt the economy in the decades to come.

The reports were supposed to reveal mainly the costs of the war in Corona, which affected the increase in the national debt, to a level of almost a trillion shekels. At the same time, however, the numbers hidden in it embody the inconceivable gaps between the average pension of a retired judge or judge, and that paid to other civil servants, for example teachers.

The first salient figure can only be defined as a time bomb. The financial statements of the State of Israel show that the total cost of pension payments is approaching by a huge step towards the NIS 1 trillion line. As of the end of 2020, the total amount that the Treasury estimates will be paid to all retirees and employees insured on a budgetary pension in the coming decades, was about NIS 831.5 billion. This is compared to NIS 785.7 billion at the end of 2019.

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The Rabbinical Court in Tel Aviv - the judges and judges are the peaks of the budget pension (Photo: Flash 90, Yonatan Zindel, Flash 90)

The state's financial statements show that 41% (NIS 343 billion) of the total future budgetary pension liability belongs to the defense system;

26% (NIS 217 billion) for the pensions for members of the education system, 18% (NIS 148 billion) - the pensions of police and IPS employees and 14% (NIS 119 billion) are pensions of state employees.

The possibility of joining a budgetary pension was closed 19 years ago, but the amount of annual payments made by the state is increasing every year.

In 2021, the total payments of budgetary pensions are expected to stand at more than NIS 23 billion and will rise to a level of NIS 35.7 billion by the end of 2038

.

The reports do not provide answers as to the reason for this, however it can be assumed that the main explanations are the increase in the wages of the insured workers - which increases the benefit accordingly as well as an increase in life expectancy.

The irrational gap between judges and elected officials and teachers

In the report of the Ministry of Finance it can be seen that the highest allowances paid by the state in December 2020 were to the judges.

The highest pension paid to Dayan in retirement was NIS 92,426.

In second place is a judge, with a record pension of NIS 84,358.

In the defense establishment, the highest pension paid in 2020 was about NIS 81,000, and among the elected officials, the discussions on the salaries of Knesset members - about NIS 64,186.

An average teacher's pension is one - eighth of that paid in 2020 to a public official.

Students at school (Photo: Reuven Castro)

These sectors are the highest in benefits and not in the average benefit, but even when you look at it, the data are almost inconceivable: the average pension among judges and judges who retired in 2020 is NIS 46.3 thousand, while among teaching staff it is less than NIS 8,000.

That is - a retired judge will receive almost six times as many retirees of the education system.

The reports also show that employees who are guaranteed a budgetary pension continue to set aside only two percent of wages (compared with about 6.5% in the private market) and also enjoy high benefits.

The budget deficit and the economic plan

Another dimension that emerges from the report is the issue of deficit. The year 2020 ended with an unprecedented deficit of NIS 170.1 billion, NIS 107.9 billion higher than in 2019, when a deficit of NIS 52.2 billion was measured, which constitutes about 3.7% of GDP.

The increase in the deficit was due to the impact of the corona crisis, which affected both a sharp increase in government spending to deal with the crisis, and a sharp decline in government tax revenues. The good news is that in neutralizing the impact of the crisis, the cumulative deficit was lower than the cumulative deficit in 2019, partly due to the continuing budget mechanism.

"In March 2021, there was a downward trend in the state's budget deficit relative to GDP. The deficit rate was 11.2% in April 2021 and 10.1% in June 2021, an index indicating a further recovery of the Israeli economy," the accountant said in the introduction. General of the Ministry of Finance Yahli Rotenberg.

Government spending to deal with the plague has increased the national debt in an unprecedented way.

Closed store (Photo: Reuven Castro)

"The financial statements provide the government, the Knesset and the general public with a comprehensive picture of how all the resources of government entities are managed," it said.

However, the State Comptroller's latest inspection revealed that these important reports used to implement government policy are not discussed at all in the Knesset and the government.

It will be interesting to follow whether the auditor's recommendation to the Accountant General will be implemented to present these reports to the decision makers.

The financial statements of the State of Israel, which are spread over more than 400 pages, include more than 200 entities: government ministries and trust units, government companies and statutory corporations.

"Addressing Government Ministries": 14 billion;

Preparations for studies: NIS 1.75 billion

The framework of the economic plan for office expenses in 2020 increased during the year to a total of NIS 84.8 billion.

Much of the program was used by the state for social security payments and business assistance, these two clauses together cost the state more than NIS 51 billion.

Here, another amazing distortion is revealed regarding how the state invests public money: the third largest item in the list of expenditures in the economic plan is "Health and response to government ministries," which in 2020 amounted to about NIS 14 billion.

The state's expenses for the "Ministry of Education's preparation for the 2011/11 school year" amounted to only NIS 1.75 billion - devoted as food for thought to those who wonder if and how the education system will open up this year.

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