The State Comptroller called upon the Minister of Finance to learn the lessons from the recently published report, which indicated a lack of financial readiness for war events and states of emergency
The State Comptroller and Ombudsman, Matanyahu Englman, attended the Annual BDO Tax and Economics Conference (3.12.2025) and referred, among other things, to the reports concerning the war. "Yesterday we published reports indicating significant gaps in all matters pertaining to the State of Israel's readiness for defense challenges. These reports are in addition to the recently published report indicating the lack of financial readiness for war events and states of emergency.
From here I call upon the Minister of Finance and senior officials in the Ministry: Do not wait until the next disaster. When formulating the State Budget for 2026, it is imperative to include a genuine reserve for states of emergency, in order not to repeat the failures of the Swords of Iron War that were raised in the report. Thus, for example, the Accountant General Department told the Minister of Finance that there are balances worth NIS 30 billion in the State Budget that have not been utilized, while the Budgets Department has determined that the effective reserve in the State Budget totals NIS 0".
Comptroller Englman at the Annual BDO Tax and Economics Conference
"It sounds like a weird argument, but the report we published exactly one month ago showed that the Swords of Iron War and its financial repercussions on the Israeli economy reflected the lack of the state's preliminary readiness for states of emergency, including the lack of financial contingency plans customized for the various emergency scenarios, and in particular for the scenario of a prolonged war".
The Comptroller added that "This gap becomes more clear in view of the lack of any specific budgetary reserve for emergencies in the State Budget for the years 2023-2024. Financial readiness for emergencies is required in order to contribute to the economy's stabilization, facilitate coping with fiscal and monetary challenges, and enable the rapid allocation of resources during emergencies. It is imperative to predetermine a reserve in the State Budget and not to start to search for sources when we encounter emergencies".
