Failure to transfer gap-closing budgets deepens poverty in Arab society

The Mossawa Center warns of rising poverty rates in Arab society and the widening economic disparities between Arab and Jewish communities in Israel, following the government's failure to transfer critical gap-closing budgets approved in 2021. The 2024 Poverty Report, published at the end of last year, underscores that poverty in Arab society is a direct result of discriminatory government policies, despite promises and resolutions made in recent years. Significant and dangerous social and economic gaps remain in employment, education, health, and housing.

In 2021, the government approved Government Resolution 550, which followed Resolution 992 from 2014, with the aim of reducing these gaps through long-term budgets and development plans. However, the report reveals that much of these commitments remain unfulfilled, and the oversight mechanisms required to monitor the allocation and implementation of these budgets have not been established.

The report highlighted key disparities, including:

• Employment: The employment rate among Arab workers is 47.9%, significantly lower than the national average of 61.3%.
• Education: Only 40% of Arab citizens have attained higher education, compared to the national average of 53.6%.
• Health: The infant mortality rate among Arabs is more than double that of Jews, at 5.2 versus 1.9 per 1,000 live births.
• Housing: Arab communities experience one of the highest population density rates in Israel, with an average of 1.29 people per room, compared to 0.77 among Jewish communities.

The report identified several factors exacerbating the economic situation, including the war, the COVID-19 pandemic, and government economic policies. Approximately 20% of Arab citizens reported that their income had declined, while 45% expressed fears of further economic deterioration. The Mossawa Center also warns that planned economic policies for 2025 - such as freezing budget allocations and increasing taxes - are expected to raise the poverty rate in Israel by 2%, pushing an additional 40,000 people into poverty, most of whom will be from the Arab community.

The report further emphasized the hardships faced by Arab residents of the Negev, who suffer from inadequate infrastructure, particularly in the context of distance education. Students in the Negev faced severe challenges during the war, compounded by food insecurity and issues with electricity and basic appliances such as refrigerators and computers.

The Mossawa Center calls on the Ministry of Interior to transfer the 670 million NIS ($190M) allocated as part of the government’s plan for the Arab community, rather than the 87 million NIS ($25M) recently approved. The Center also urges the government to implement all approved resolutions and fully allocate the promised budgets. Furthermore, the Mossawa Center calls for a comprehensive, long-term plan to address the high cost of living, employment crises, and infrastructure development.

The Mossawa Center emphasizes:
“The Ministries of Finance and Foreign Affairs often boast to international financial institutions such as the OECD about government resolutions to close economic gaps while concealing the lack of actual implementation. The government must understand that ignoring this crisis will lead to a dangerous reality, not only for Arab society but also for the overall economic growth of the country.”