Friday Jul 11, 2025
NEWSLETTER
www.israelhayom.com
  • Home
  • News
    • Israel
    • Israel at War
    • Middle East
    • United States
  • Opinions
  • Jewish World
    • Archaeology
    • Antisemitism
  • Lifestyle
    • Food
    • Travel
    • Fashion
    • Culture
  • Magazine
    • Feature
    • Analysis
    • Explainer
  • In Memoriam
www.israelhayom.com
  • Home
  • News
    • Israel
    • Israel at War
    • Middle East
    • United States
  • Opinions
  • Jewish World
    • Archaeology
    • Antisemitism
  • Lifestyle
    • Food
    • Travel
    • Fashion
    • Culture
  • Magazine
    • Feature
    • Analysis
    • Explainer
  • In Memoriam
www.israelhayom.com
Home Analysis

How much will the new election cost?

The sums being quoted about the cost of a new election are ludicrous. Of course, it is an unexpected expense but Israel will simply have to find the money to carry out the democratic process.

by  Eran Bar-Tal
Published on  05-31-2019 12:00
Last modified: 06-03-2019 11:57
How much will the new election cost?

An election worker moves ballot boxes at the Central Elections Committee warehouse ahead of the election

Share on FacebookShare on Twitter

Along with all the weightier questions being asked about the surprise new election we are facing, figures have been tossed around about the financial cost of holding a second election within six months. Most of them have little connection to reality.

As business owners know, there is a difference between cost, direct or indirect and "loss of income." The direct cost of a new election includes the major expenditures, which come from the state coffers: funding for parties and a budget for the Central Elections Committee. There are also other costs that stem from the government keeping appointees on the payroll who cannot do their jobs, or have no new work to do.

The direct cost is some 800 million shekels ($220 million), but the indirect costs are harder to estimate. Even the loss of income can be divided into two categories: the loss of a day off for government workers, and the loss to the economy as a whole. The government pays its workers for the day off, including special bonuses for those employees who cannot be released for election day.

But the country also loses because the private sector is shut down and a day of tax revenue goes up in smoke. Israel's daily gross domestic product stands at some 5 billion shekels ($1.4 billion). Clearly, election day does not comprise a loss of 5 billion shekels to the state budget, but conservative estimates indicate that the country loses some 1.5 billion shekels ($410 million) – some say it is even more. So we can assess the cost of an election at 2.5-3 billion shekels ($680 million-$830 million), approximately 1 billion ($300 million) of which comes directly out of the government's pocket.

Does the government have that money on hand?

The question is almost irrelevant. Just like the government found ways to fund the wars it was compelled to fight, it will have to change its priorities to find the money to carry out the democratic process, which it is obligated to do under law.

Where will the money come from?

Obviously, the Treasury did not plan for two elections in a single year. The Treasury has already said that the expenditure will require widespread cuts to government ministries. This is an immediate solution that the government will apparently have to accept before turning to other methods, like tax hikes, which would require a cabinet decision to be enacted.

Do we benefit from a new election?

It's possible. In the meantime, the transitional government cannot increase its spending, so the growing deficit could be checked. Many people in the manufacturing sector are happy to have a break from legislation they feel is weighing them down. In the U.S., the federal government was totally shut down before the last budget resolution, and it did not cause any exceptional damage to the economy or the money markets. But obviously, if a government is not assembled in a timely manner this time, it will indicate instability and could adversely affect the economy.

Tags: DemocracyelectionKnessetstate budget

Related Posts

US army sends message to Iran - with quote from 'Harbu Darbu'IDF Spokesperson's Unit

What an Israeli strike on Iran might look like

by Yoav Limor

If Israel ultimately decides to strike Iran, the range of potential scenarios spans from a complete obliteration of Tehran’s nuclear...

India and Pakistan on brink of war: How the region edged toward nuclear escalationAFP

India and Pakistan on brink of war: How the region edged toward nuclear escalation

by Elchanan Shpayizer/Makor Rishon

A deadly terror attack in Kashmir has reignited one of the world’s most volatile conflicts. What triggered the latest flare-up,...

Eight tough questions about Trump's Gaza takeover planReuters

All the reasons Israel doesn't want US control over Gaza

by Nitzan David Fuchs/Makor Rishon

Trump’s plan may sound tempting, but if our greatest ally becomes our next-door neighbor, relations could sour quickly.

Menu

Analysis 

Archaeology

Blogpost

Business & Finance

Culture

Exclusive

Explainer

Environment

 

Features

Health

In Brief

Jewish World

Judea and Samaria

Lifestyle

Cyber & Internet

Sports

 

Diplomacy 

Iran & The Gulf

Gaza Strip

Politics

Shopping

Terms of use

Privacy Policy

Submissions

Contact Us

About Us

The first issue of Israel Hayom appeared on July 30, 2007. Israel Hayom was founded on the belief that the Israeli public deserves better, more balanced and more accurate journalism. Journalism that speaks, not shouts. Journalism of a different kind. And free of charge.

All rights reserved to Israel Hayom

Hosted by sPD.co.il

  • Home
  • News
    • Israel at War
    • Israel
    • United States
    • Middle East
    • Sports
  • Opinions
  • Jewish World
    • Archaeology
    • Antisemitism
  • Lifestyle
    • Food
    • Travel
    • Fashion
    • Culture
  • Magazine
    • Feature
    • Analysis
    • Explainer
    • Environment & Wildlife
    • Health & Wellness
  • In Memoriam
  • Subscribe to Newsletter
  • Submit your opinion
  • Terms and conditions

All rights reserved to Israel Hayom

Hosted by sPD.co.il

Newsletter

[contact-form-7 id=”508379″ html_id=”isrh_form_Newsletter_en” title=”newsletter_subscribe”]

  • Home
  • News
    • Israel at War
    • Israel
    • United States
    • Middle East
    • Sports
  • Opinions
  • Jewish World
    • Archaeology
    • Antisemitism
  • Lifestyle
    • Food
    • Travel
    • Fashion
    • Culture
  • Magazine
    • Feature
    • Analysis
    • Explainer
    • Environment & Wildlife
    • Health & Wellness
  • In Memoriam
  • Subscribe to Newsletter
  • Submit your opinion
  • Terms and conditions

All rights reserved to Israel Hayom

Hosted by sPD.co.il