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2. MAIN FINDINGS
Total national expenditure on education in 2015, amounted to NIS 90.3 billion, comprising
7.8% of the Gross Domestic Product. In 2015, the national expenditure on education (at
constant prices) increased by 2.4%, following an increase of 3.6% in the previous year, and
4.7% in 2013. (Diagram 1). The national expenditure on education per capita increased by
0.3%, following an increase of 1.6% in 2014.
2015*
2014*
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
90
80
70
60
50
40
30
20
10
0
1990
NIS Billion
1. NATIONAL EXPENDITURE ON EDUCATION
(AT 2010 PRICES)
*Provisional data.
Current national expenditure on education (total expenditure excluding fixed capital
formation), at constant prices, increased by 4.5% in 2015, following an increase of 2.0% in
2014.
Fixed capital formation, at constant prices, increased by 5.1% in 2015, after a decrease of
6.0% in 2014. In years 2013 and 2012 there was an increase of 5.1% and 0.1%,
respectively.
National Expenditure on Education by Operating Sector
In 2015, most of the education services (81%) were provided to the population in educational
institutions of the government, local authorities and non-profit institutions that are mainly
financed by the government (the universities, the ORT and Amal educational organizations,
etc.).
The value of services provided by educational non-profit institutions (mainly financed by
private sources) in 2015 was 9% of the national expenditure on education.
( 13 )
The share of educational services provided on a commercial basis, e.g.: pre-primary
services, private tutoring (including supplementary instruction for school pupils), courses for
adults, textbooks, etc., amounted to 10%.
Current Expenditure of General Government and Non-Profit Institutions, by Type of
Expenditure
In 2015, 74% of current expenditure of government, local authorities and non-profit
institutions on educational services was for labor costs, 22% for the purchase of goods and
services, and 4% were computed expenditure on depreciation.
2. CURRENT NATIONAL EXPENDITURE ON EDUCATION IN GENERAL
GOVERNMENT, LOCAL AUTHORITIES AND NPI'S,
BY TYPE OF EXPENDITURE
*2015
Depreciation
4%
Purchases of goods
and services
22%
Labour cost
74%
Total NIS 75.7 billion
*Provisional data.
National Expenditure on Education by Financing Sector
In 2015, the government sector (government, local authorities and non-profit governmental
institutions) financed about 81.3% of the total national education expenditure - higher than
in 2014 (78.8%). The rest of the expenditure was covered directly by households through
purchasing education services, payment of tuition fees, buying books and writing supplies,
etc., as well as by donations and grants to educational institutions from domestic sources
and from sources abroad (18.7%) (Table A).
Detailed data on the funding of expenditure by financing sector and level of education for
2013 (last year with detailed data), show that the government sector financed 77.9% of the
total expenditure, and that households (including private NPIs) financed 22.1% of the total
expenditure.
( 14 )
Detailed data for 2013 by level of education show that the government and local authorities
and non-profit governmental institutions financed 98% of the current expenditure at the
primary education. The government and local authorities financed 73% of pre-primary
education institutions. This is a significant decrease compared to 2012 due to the fact that
this year, pre-primary education included education aged 0-3, which increased the
participation of household expenditure. Additionally, the government, local authorities and
governmental NPIs covered 87% of the expenditure of secondary school educational
institutions.
The government and the local authorities also covered 68% of universities expenditure (not
including separately budgeted research), 46% of college's expenditure (academic and nonacademic) and 7% of the expenditure of other institutions. In 2013, it was decided to
separate the colleges (academic and non-academic) from other institutions, which include
Hebrew teaching, courses for adults and other educational services. That is the reason why
this data is not comparable to 2012 at this level of education (Diagram 3).
100
90
3. NATIONAL EXPENDITURE ON EDUCATION, BY FINANCING SECTOR AND
LEVEL OF EDUCATION
2013
13
2
27
32
Percentages
80
54
70
60
50
40
93
98
87
73
68
30
46
20
10
7
0
Pre-primary
Primary
Secondary
Universities
Government, Local Authorities & non profit institutions
Colleges
Other
Institutions
Households and Donations
Current National Expenditure by Level of Education
Current expenditure on pre-primary, primary (including supplementary lessons) and
secondary (including private tutoring) educational institutions in 2013 reached 68% of current
national expenditure on education; out of this amount, 14% were directed towards pre-
( 15 )
primary education institutions, 31% - to primary education and 23% - to secondary education.
It is important to mention that compared with 2012, current expenditure on education on preprimary education increased due to the fact that in this year, education for children aged 0-3
was added as well to the calculation of pre-primary expenditure.
The expenditure on tertiary educational institutions reached 20% of the current national
expenditure on education (Diagram 4, Table 2).
4. CURRENT EXPENDITURE ON EDUCATION,
BY LEVEL OF EDUCATION
2013
Tertiary education
20%
Courses for adults
1%
Secondary education
23%
Other educational
services
6%
Yeshivot, Hebrew
teaching & textbooks
2%
Primary education
31%
Pre-primary
education
14%
Total NIS 77.1 billion
General
administration
3%
Current expenditure per student rises with the rise of educational level. Data on the
distribution of current expenditure per student by level of education between 2011 and 2013
reveals that the cost of studies per student in higher education was more than two times
higher than the cost per student in secondary education and more than three times higher
than the cost per child in pre-primary education. (Table B).
( 16 )
Combined Account of the Universities (for details on the universities, see Section 3 Definitions, Para. 3.2)
The combined account of the universities is presented in Table 10. The table covers all their
activities, including teaching and associated research, as well as courses and research that
are budgeted separately. This combined account facilitates examination of the total
resources that were available to the universities, compared with the various expenditures on
all their activities. It should be noted that national expenditure on education does not include
expenditure on separately budgeted research.
The combined account of the universities was compiled in accordance with their financial
reports. The recorded income, deficit, or surplus does not include financial commitments
from various entities.
The combined account indicates that in the academic year 2012/13 (from October 2012 to
September 2013), 92.7% of the total expenditure of universities was current expenditure for
goods and services; approximately 5.1% was for student scholarships, awards, and other
forms of support; and 6.1% was capital formation in buildings and equipment. That same year,
there was a deficit of finance income to finance expenses (-3.9%).
In the 2012/13 academic year, 75.2% of the current expenditure for goods and services was
used for teaching and associated research; 17.5% was used for separately budgeted
research.
The government financed approximately 56.7% of the expenditure of universities (by current
transfers) in 2012/13, compared with 58% in the previous year. Income from the government
included special allocations to cover the universities’ cumulative deficit and the enrollment of
immigrant students.
International Comparison
The data shown here were taken from the official publication of the OECD: Education at a
Glance 2016.
Comparison of countries belonging to the OECD, for 2013, reveals that the levels of
expenditure change significantly from country to country. The share of national expenditure
on education out of the Gross Domestic Product in Israel (6.8%) was one of the highest
compared to all other countries examined (Diagram 5). In Sweden it was equal to Israel; in
Finland and the United States the percentage of expenditure of the GDP was similar to Israel
(6.6%). The OECD countries invest 5.8% of the GDP, on average, in educational institutions
(Table 3).
( 17 )
However, when making comparison of national expenditure on education, it is important to
bear in mind that Israel has a higher percentage of young people in its population than the
OECD countries. The percentage of Israeli residents who work and can finance expenditures
on education is relatively small, while the percentage of students is relatively high. As a
result, the expenditure per pupil in Israel was smaller. In 2013, the percentage of the
population aged 0-24 in Israel reached 43.4%, compared with 26.8% on the average in the
other OECD countries (see below).
Population by Age Group 0-24 in Israel and Selected OECD Countries
2013
Percent of total population,
Israel
43.4
Ireland
33.6
United States
33.2
Norway
31.4
United Kingdom
30.5
France
30.3
Denmark
30.2
Netherlands
29.3
Sweden
29.0
Finland
28.5
Spain
25.0
Germany
24.0
Italy
23.9
Source: OECD Statistics, Demography and Population.
CBS web site, Yearly Data 2015
( 18 )
5. NATIONAL AND PUBLIC EXPENDITURE IN EDUCATION INSTITUTIONS ,
AS A PERCENTAGE OF GDP
2013
8
Percentages
7
6
5
4
3
2
1
Czech
Republic
Germany
Spain
Austria
OECD
average
Australia
Netherlands
Belgium
Finland
United
States
Israel
Sweden
Iceland
United
Kingdom
New
Zealand
Norway
0
Public expenditure on education as a percentage of GDP
Total expendiuture on education as a percentage of GDP
Comparison of the expenditure in educational institutions by level of education (Table 6)
shows that in Israel the expenditure was higher in primary and secondary educational
institutions and pre-academic preparatory courses – 4.3% of the GDP, compared to 3.7% in
the OECD. However, in tertiary education, the expenditure as a percent of the GDP in Israel
was 1.7%, similar to OECD countries – 1.6%.
The public expenditure on education in institutions in Israel (including expenditure of
government ministries, the National Insurance Institute, national institutions, local authorities
and public non-profit institutions), including scholarships to students, reached 4.8% of the
GDP in 2013, equal to the OECD average.
( 19 )
Percentages
6. RELATIVE SHARE OF PUBLIC AND PRIVATE EXPENDITURE IN
EDUCATIONAL INSTITUIONS, AT ALL LEVELS OF EDUCATION
2013
100
90
80
70
60
50
40
30
20
10
0
Austria
Iceland
Czech
Republic
OECD
average
Spain Netherlands
Public sources
Israel
United Australia
Kingdom
United
States
Private sources
The share of public expenditure out of the total finance of education in Israel in 2013 was
77.9% (Diagram 6, Table I). The share of public expenditure in the national expenditure on
education in other countries ranged from 61% (Chile) to 98% (Finland).
In primary and secondary educational institutions and in pre-academic preparatory courses
in Israel, the public finance in 2013 reached 88.6%, close to the average of OECD countries
in the same year – 91.3% and similar to the public financing in the Netherlands – 87.5%.
In tertiary education, the financing from private sources was more common in Israel and
reached 49.7%, higher than the average in other OECD countries – 30.2%, and lower than
the United States – 63.7%, and Australia – 57.5%. However, in some countries the private
financing was particularly low, such as Iceland – 8.8% and Austria – 5.4%. (Table I).
The share of public expenditure on education out of the total public expenditure (Diagram 7)
in Israel was 11.5% – higher than the average in OECD countries – 11.3%. The share of
public expenditure on primary and secondary education and pre-academic preparatory
courses out of the total public expenditure in Israel was 9.3%, higher than the average in
OECD countries – 8.2%.
However, the share of public expenditure on tertiary education out of the total public
expenditure in Israel was 2.2%, lower than the average in OECD member countries – 3.1%.
(Table G).
( 20 )
7. PUBLIC EXPENDITURE ON EDUCATION BY LEVEL OF EDUCATION, AS A
PERCENTAGE OF TOTAL PUBLIC EXPENDITURE
2013
20
Percentages
15
10
5
Czech
Republic
Spain
France
Austria
Belgium
Finland
Sweden
OECD
average
Netherlands
Israel
United
States
United
Kingdom
South Korea
Norway
Ireland
New
Zealand
0
All levels of education
Tertiary education institutions
Primary and secondary institutions and pre-academic preparatory courses
Expenditure on Education per Pupil, by Level of Education
A comparison of the average expenditure per pupil/student in terms of Purchasing Power
Parities (PPP) reveals that the average expenditure per pupil in Israel at all levels of education
was lower than the average in OECD member countries (Table D, Diagram 8).
Thousand Dollars*
8. EXPENDITURE ON EDUCATION PER PUPIL/STUDENT IN PUBLIC AND
20
18
16
14
12
10
8
6
4
2
0
PRIVATE INSTITUTIONS, BY LEVEL OF EDUCATION
2013
Pre-Primary
educational
institutions
Primary educational Secondary educational
institutions
institutions
OECD countries
*Based on purchasing power parity.
( 21 )
Israel
Tertiary educational
institutions
The expenditure per pupil in Israel in primary to tertiary education was $7,840 (in terms of
Purchasing Power Parities – PPP), lower than the average in OECD countries – $10,493
and similar to Estonia ($8,107) and the Czech Republic ($7,493).
In primary education, the expenditure per pupil in Israel was similar to France and Spain, but
lower than the average in OECD countries by 18%.
In secondary education, the expenditure per pupil in Israel was also lower than the average
in OECD countries. In Hungary and Mexico the expenditure was lower than in Israel. The
expenditure per pupil was particularly high in Austria, the United States, Norway, Belgium
and the Netherlands.
In tertiary education institutions, the expenditure per student on education in Israel was lower
by 4% than in OECD countries. In some of the countries (New Zealand, Spain, Czech
Republic, Mexico, South Korea, Hungary and Iceland) the expenditure per student was even
lower than in Israel. (Diagram 9 and 9a, Table D).
9. EXPENDITURE ON EDUCATION PER PUPIL IN PUBLIC AND PRIVATE
INSTITUTIONS, PRE-PRIMARY AND PRIMARY EDUCATION
2013
16
Thousand Dollars*
14
12
10
8
6
4
2
Pre-Primary education
*Based on purchasing power parity.
( 22 )
Primary education
Czech
Republic
Hungary
Israel
Spain
France
South
Korea
New
Zealand
Australia
Netherlands
OECD
average
Finland
Belgium
Iceland
Sweden
Austria
United
Kingdom
United
States
Norway
0
9a. EXPENDITURE ON EDUCATION PER PUPIL/STUDENT IN PUBLIC AND
PRIVATE INSTITUTIONS, SECONDARY AND TERTIARY EDUCATION
2013
Thousand Dollars*
30
25
20
15
10
5
Tertiary education
Iceland
Czech
Republic
Hungary
South
Korea
Spain
Israel
New
Zealand
Belgium
OECD
average
France
Austria
Finland
Ausralia
Netherlands
Norway
Sweden
United
States
United
Kingdom
0
Secondary education
*Based on purchasing power parity.
The data on the national expenditure distribution by educational level (Table E) reveals that
the expenditure per student in tertiary education institutions in Israel was almost two times
the expenditure per pupil in secondary educational institutions and was similar to OECD
countries average, the United States, the United Kingdom, Sweden, and Mexico.
National Expenditure on Education, by Type of Expenditure and Level of Education
A comparison of the types of expenditure reveals that in primary and secondary education
institutions in Israel the share of labor costs out of the total current expenditure was 82%,
higher than the average in the OECD countries – 77%. The data on total labor costs also
include wages of employees who are not teachers, as well as an estimate of the value of the
budgetary pension of government employees.
In primary education institutions, the share of fixed capital formation of the total expenditure
in Israel (11%) was slightly higher than the average in the OECD countries (8%).
In tertiary education institutions, the share of compensation of employees of the total current
expenditure in Israel was 69%, the same as Norway, and higher than the average of 67% in
OECD countries. The share of fixed capital formation in these institutions in Israel was 7%,
lower than the average in OECD countries – 11%. (Table H).
( 23 )
10. EXPENDITURE ON EDUCATIONAL INSTITUTIONS IN PRIMARY
EDUCATION, FROM PUBLIC AND PRIVATE SOURCES,
Czech
Republic
Finland
Sweden
South
Korea
Austria
Australia
Slovenia
OECD
average
France
Norway
United
States
Israel
Netherlands
Germany
100
90
80
70
60
50
40
30
20
10
0
Belgium
Percentages
BY TYPE OF EXPENDITURE
2013
Other expenditure
Labour costs
10a. EXPENITURE ON EDUCATIONAL INSTITUTIONS IN
TERTIARY EDUCATION, FROM PUBLIC AND PRIVATE SOURCES, BY TYPE
Labour costs
Other expenditure
( 24 )
South
Korea
Finland
Australia
Sweden
United
States
Austria
Germany
OECD
average
Norway
Israel
Irland
Netherlands
Denmark
France
100
90
80
70
60
50
40
30
20
10
0
Belgium
Percentages
OF EXPENDITURE
2013