"We are facing substantial economic risks – we cannot afford a lost decade of economic growth"

State Comptroller Englman at the Eli Horowitz Conference hosted by the Israel Democracy Institute: "The Prime Minister and the Minister of Finance must devise an immediate growth-oriented multi-year economic plan." Regarding the audit concerning the war: "Everyone is being examined, from the Prime Minister on down."

State Comptroller and Ombudsman Matanyahu Englman commenced the second day of the Eli Horowitz Conference, organized by the Israel Democracy Institute in Jerusalem (May 28, 2025). In his address, State Comptroller Englman discussed the economic challenges arising from the war. The following are the key points of his remarks:

"Today marks 600 days since the abduction of our hostages. We express our hope for their swift return to their homes and families. Currently, we are conducting a comprehensive audit of the government's response concerning the hostages who have returned and their families. In conjunction with the intense fighting we are engaged in, and its numerous achievements against our adversaries, we must pursue an independent and thorough examination of the various failures linked to the lethal terrorist attack of October 7. For several months, our office has been diligently working on multiple audits addressing a range of issues related to the terrorist attack and the Iron Sword War. These audits encompass all levels – political, military, and civilian.

In response to unfounded claims made by certain interested parties, I must emphasize again: our examination encompasses everyone, from the Prime Minister and down - no one is exempt from the state audit. As State Comptroller, my sole commitment is to the citizens of Israel. Within our democratic framework, state audit holds paramount importance. No interested party shall deter or diminish our resolve. Amidst vigorous debate, we are compelled to heed the silent voices of those who are no longer with us and owe a duty to them and their families, and to all citizens of Israel.

We are in the process of finalizing a report addressing the absence of a national security strategy and the implications of the failures observed on October 7, along with an analysis of the licensing and security of the party in Ra'im. The findings regarding the licensing and security of the party in Ra'im highlight numerous deficiencies, making it crucial for those responsible to face appropriate consequences.

In addition to the audit regarding the fundamental issues surrounding the events of October 7, I wish to highlight a pressing matter that requires urgent attention, sooner rather than later. Israel is facing considerable economic challenges in the context of the war. In conjunction with addressing cost of living concerns, we are finalizing a report on economic preparedness for wartime scenarios and budget management related to the 'Iron Swords' war.

Without delving into the specifics of the report, it is imperative to note that the government must develop a strategy to address the deficit, necessitating the immediate formulation of a growth-oriented multi-year economic plan. The projections for the years 2023-2025 indicate cumulative deficits in the state budget amounting to NIS 300 billion, prior to the anticipated increase in the deficit for 2025. Furthermore, the recommendations from the Nagel Committee, along with payments for war damages, are expected to impose significant financial burdens in the coming decade, amounting to tens of billions of NIS annually. 

Alongside security risks, we are confronted with substantial economic challenges. 

We experienced a severe economic crisis following the Yom Kippur War, and we cannot afford a repeat of a lost decade of economic growth, particularly amid the decline in our international standing.
It is essential for the Prime Minister and the Minister of Finance to devise an immediate growth-oriented multi-year economic strategy, amidst existing security challenges. Actions begin with careful consideration."