As the Knesset Finance Committee deliberates on the 2025 state budget, a new report from the Mossawa Center warns of the severe consequences of continued budget cuts and calls for the allocation of additional billions to address economic and social disparities affecting the Palestinian Arab community in Israel.

The analysis, prepared by the Mossawa Center’s Socio-Economic Department, highlights that the 2025 budget proposal by the Ministry of Finance fails to address key disparities in poverty, education, housing, social services, healthcare, and transportation infrastructure. Despite government commitments to bridging these gaps, the financial allocations for the Arab community remain below 4% of the total government development budget - a figure the Mossawa Center condemns as systemic discrimination in resource distribution.

Government Resolution 550: Unmet Promises and Implementation Barriers

Since 1999, successive Israeli governments have passed resolutions aimed at reducing inequalities between Jewish and Arab communities. However, bureaucratic and administrative obstacles have repeatedly hindered their implementation.

Government Resolution 550, passed in 2021, was intended to support economic development in Arab towns, mixed cities, and Bedouin localities in the Negev and Galilee. The Mossawa Center’s report reveals that despite these commitments, implementation has been obstructed by restrictions imposed by the Ministry of Finance and other governmental bodies, preventing funds from reaching their intended recipients.

Urgent Calls for Budgetary Reforms and Increased Transparency

The Mossawa Center urges Knesset members to ensure that funds aimed at closing social and economic gaps are secured in the final budget approval this week. Additionally, the Mossawa Center calls for greater transparency in the distribution of development funds and proposes several concrete measures:

• Mandating government ministries to fully implement programs outlined in Resolution 550.
• Strengthening parliamentary oversight to monitor how budgets allocated to the Arab community are spent.
• Removing bureaucratic barriers that prevent funds from being distributed effectively.

Key Sectors Requiring Urgent Budget Increases

According to the Mossawa Center’s budget analysis, the current allocations fall significantly short of what is needed to bridge economic and social gaps. The report calls for substantial increases in funding for critical sectors:

• Education: The 7.5 billion NIS ($2B) allocated under Resolution 550 is insufficient. The Mossawa Center demands an increase to 12 billion NIS ($3.3B), with a focus on building classrooms in the Negev and addressing other pressing educational needs.
• Social Welfare: Increased support for welfare departments in Arab local councils to strengthen social services and provide aid to marginalized communities.
• Healthcare: The current budget for Arab healthcare initiatives is 650 million NIS ($177M) - far below what is needed. The Mossawa Center calls for an increase to 1 billion NIS ($270M), including the establishment of additional health units in Arab towns and expanded budgets for public health education.
• Employment & Economic Development: Building on recommendations from the Mossawa Center’s Economic Development Conference, the report urges greater investment in employment programs and economic initiatives to support Arab entrepreneurs and job creation.
• Transportation: The six-year transport plan must be expanded to 12.5 billion NIS ($3.4B), ensuring improved infrastructure and accessibility in Arab localities.
• Housing & Urban Planning: Increased funding for urban development, tourism, and planning for Bedouin towns in the Negev to address chronic housing shortages and promote sustainable development.
• Higher Education Support: The report demands that 25% of all university student grants be allocated to Arab students, ensuring equal access to higher education.
• Crime & Violence Prevention: A significant increase in government support for combating violence and organized crime within Arab society.

A Stark Warning to the Government

The Mossawa Center’s report serves as a stark warning to the Israeli government, demanding immediate and concrete measures to fulfill past commitments and rectify deepening economic disparities between Jewish and Palestinian Arab communities.

The urgency of these demands is further underscored by the recent national poverty report, published two months ago, which revealed a disturbing rise in poverty rates within Arab society. Without immediate intervention, these disparities will only worsen, exacerbating social and economic instability.

The Mossawa Center continues to advocate for fair resource distribution and structural reforms to ensure full and equitable participation of Palestinian Arab citizens in Israel’s economy and society.