In accordance with the 2023 biannual actual comparative spending report, issued by the Ministry of Finance, the actual spending earmarked for the Ministry of Social Development was ILS55,48 (million) of an overall biannual total of actual spending from the 2023 budget, or 6.7% of the overall expenditures.
In accordance with the biannual 2022 actual spending report, issued by the Ministry of Finance, actual expenditure allocated to the Ministry of Social Development, including the Martyrs’ Families’ Institute” totaled ILS390.1 (million) of an overall biannual total of actual spending from the 2022 budget, or 5.2% of the overall expenditure.
Comparison of biannual comparative spending for Ministry of Social Development 2022-2023/million shekels
While the CTP (Cash Transfer Program) is the backbone of the Ministry of Social development’s work and its budget exceeds 90% of the ministry’s budget, still cash payments disbursed to poor families in the first half of 2023 were one of four payments only. This is evidence of the government’s failure to commit to the disbursal of due payments, which has been the case since 2018. What’s more, developmental expenditures are still limited, totaling in the first half of 2023 to only ILS2.5 million, thus negatively impacting on the ministry’s programs on protecting poor and marginalized sectors. Moreover, the actual spending on the program for protection of poor and marginalized sectors amounted to only 30% of the estimated budget in the first half of 2023, which is below the required amount. This negatively impacts the extent to which social services are implemented for these sectors (women, the elderly, children, special needs persons).
Analysis of biannual comparative actual spending figures for the Ministry of Social Development for 2022-2023:
One: The biannual actual spending for the Ministry of Social Development for 2023 was higher than actual spending in 2022 by a statistically significant percentage, whereby biannual actual spending increased in 2023 from (ILS390.09) million in 2022 to (ILS 550.48) million in the same period in 2023 and at an increased amount of ILS160.3 million, or 141.1% from the middle of 2022.
Two: Actual spending increased at the MoSD during the first half of 2023 from the overall expenditures, in comparison to the first half of 2022, from 5.2% to 6.7%.
Three: Actual spending on the items of salaries and wages, social contributions and goods and services increased in the first half of 2023 in comparison with the first half of 2022, by a limited percentage of 2%. This is attributed to the natural increase in annual salaries.
Four: Actual spending on the item of transfer expenditures, which is the largest and most important item in the MoSD budget and includes cash payments to poor families, increased in the first half of 2023, compared with the first half of 2022, from (ILS349.1) million to (ILS509.1) million. Nevertheless, the Ministry of Social Development only disbursed one installment of cash assistance to poor families in the first half of 2023.
Five: Development expenditures decreased in the first half of 2023 from 2022, from (ILS3.02) million to (ILS2.53) million. This casts a negative shadow on expenses allocated to the social protection program funded by development expenditures.
Six: Spending on capital expenditures increased in the first half of 2023 from 2022, from (ILS0.005) million to (ILS0.043) million. In spite of this increase, the amount is still low.
Seven: Spending is still focused on the item of transfer expenditures and cash assistance, which takes up most of the MoSD budget. While cash assistance is important, it is necessary to shift towards a development rather than a relief approach through social services, economic empowerment and protection for poor and marginalized sectors.
It is noteworthy from the biannual comparative actual spending analysis for 2022-2023 that the actual spending on the Ministry of Social Development, including the Martyrs Families’ Institute, rose considerably, whether at the level of the actual amount spent or the percentage of the PA’s overall expenditures.
Moreover, the CTP still suffers from irregular installment payments to poor and marginalized sectors in spite of the rise in spending on this sector in the first half of 2023. Only one installment was disbursed in 2023 and one partial installment in the middle of 2022, even though two installments were supposed to be disbursed in this half of the year.
In general, the transfer expenditures constitute approximately 92.5% of the Ministry of Social Development’s actual spending, which indicates that spending is still concentrated on aid and not on social protection for poor and marginalized sectors.