public welfare expenditure in Israel in 2019 was among the lowest in the OECD countries

The holes in Israel's social security network widened even before the corona crisis, according to data from the April edition of the publication "Social Security in the World" in the National Insurance Institute. According to the document, public welfare expenditure in Israel in 2019 was among the lowest in the OECD and stood at 16.3% of gross national product (GDP). This figure places Israel in 30th place out of 37 countries. 17% of GDP in 2017. In the Corona crisis itself, public spending increased at a rate similar to the OECD average, but it cannot be concluded that Israel has bridged the gap.
"The contribution of increasing aid to reducing economic damage in the corona crisis illustrates the great importance of the social safety net, especially in times of crisis," the Social Security states in the document. "The effects of the epidemic are expected to continue into 2021. Reducing social and economic harm depends on the willingness of policymakers to provide a real social safety net until the end of the economic crisis." At the end of June, the extension of the unemployment benefit payment will end. The next government will have to decide whether there will be a further extension, according to what criteria and what percentage of unemployment benefits.
The average public expenditure on welfare in the OECD was 20% of GDP in 2019, compared with 16.3% in Israel. The highest expenditure was in France and it was 31% - almost double that of Israel. Finland is followed by Finland (29.1%), Belgium, Denmark and Italy. (28.2%). In last place is Mexico with a public expenditure of 7.5% of GDP, followed by Chile and Turkey (12%) in ascending order.
 Israel is placed on quite a few issues related to welfare and education at the bottom of the table of developed countries along with Turkey, Chile and Mexico. In 2017, the rate of Israeli welfare expenditure was still 17.3% of GDP, which placed it in 24th place out of 35 countries. At that time, Israel was 12 from the end. Now with 16.3% it is eighth from the end.
 The two main components of public welfare expenditure are public expenditure on pensions and health. In the field of public expenditure on pensions, Israel, with 4.7% of GDP, was well below the average of developed countries in 2019, which stood at 7.8%. This is of course due to the growing erosion of old-age pensions, but also the transition in Israel from budget to private pensions. In Israel because of the young population, the highest public expenditure on pensions was in Italy and Greece, with more than 15% of GDP, and the lowest in Chile, Korea and Mexico (about 3%).
In the field of health, Israel's situation is slightly better. Public health expenditure in Israel was 4.8% of GDP in 2019, not much less than the OECD average of 5.6%. The highest expenditure was in France and Germany - 8% of GDP - and the lowest in Mexico and the Netherlands, where the use of health insurance is common. Private, with 2.6% of GDP. The other components of public welfare expenditure in Israel are: support for the working age population (4%), sickness and disability payments (1.6%), child benefits and maternity benefits (1.1%), unemployment benefits (0.6%) And other social support (0.5%).