2. MAIN FINDINGS
Total national expenditure on education in 2014, amounted to NIS 86.4 billion, comprising 7.9%
of the Gross Domestic Product. In 2014, the total national expenditure on education (at constant
prices) increased by 1.7%, following an increase of 5.9% in the previous year, and 4.4% in 2102
(Diagram 1). National Expenditure on education per capita decreased by 0.2%, compared with
an increase of 3.9% in 2013.
1. NATIONAL EXPENDITURE ON EDUCATION
(AT 2010 PRICES)
80
70
NIS Billion
60
50
40
30
20
10
2014*
2013*
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
0
*Provisional data.
Current national expenditure on education (total expenditure excluding fixed capital formation),
at constant prices, increased by 2.5% in 2014, following an increase of 3.4% in 2013.
Fixed capital formation, at constant prices, decreased by 15.0% in 2014, after an increase of
5.8%, 0.1% and 6.5% in 2013, 2012 and 2011, respectively. The decrease in 2014 mainly
reflects a decrease in fixed capital formation in the local authorities. In 2013, the increase was
due to the introduction of the free education law from age three.
National Expenditure on Education by Operating Sector
In 2014, most of the education services (84%) were provided to the population in educational
institutions of the government, local authorities and non-profit institutions that are mainly
financed by the government (universities, ORT and Amal educational organizations, etc.).
The value of services provided by educational non-profit institutions (mainly financed by private
sources) in 2014 was 8% of the national expenditure on education.
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The share of educational services provided on a commercial basis (other), such as pre-primary
services, private tutoring (including supplementary instruction for school pupils), courses for
adults, textbooks, etc., amounted to 8%.
Current Expenditure of General Government and Non-Profit Institutions, by Type of
Expenditure
In 2014, 70% 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
8% were computed expenditure on depreciation.
2. CURRENT NATIONAL EXPENDITURE ON EDUCATION
IN GENERAL GOVERNMENT AND NPI'S,
BY TYPE OF EXPENDITURE
*2014
Depreciation
8%
Labour cost
70%
Purchases of goods
and services
22%
Total NIS 74.5 billion
*Provisional data.
National Expenditure on Education by Financing Sector:
In 2014, the government, local authorities and non-profit governmental institutions financed
approximately 79% of the total national education expenditure - lower than 2013 (80%). 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 (21%) (Table A).
Detailed data on the funding of expenditure by financing sector and level of education for 2012
(last year with detailed data ), show that the government sector financed 79% of the total
expenditure, and households (including private NPIs) financed 21% of the total expenditure.
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Detailed data for 2012 by level of education show that the government and local authorities and
nonprofit governmental institutions financed 98% of the current expenditure at the primary
education, 94% - at the pre-primary education institutions (a significant increase compared to
2011 due to the entry of the free education law from age 3) and 68% - at secondary schools.
The government, the local authorities and governmental NPIs also covered 64% of universities
expenditure (not including separately budgeted research) and 46% of the expenditure of other
institutions of tertiary education (Diagram 3).
100
3. NATIONAL EXPENDITURE ON EDUCATION, BY FINANCING SECTOR AND
LEVEL OF EDUCATION
2012
2
6
90
32
Percentages
80
37
56
70
60
50
94
98
40
68
30
63
44
20
10
0
Pre-primary
Primary
Secondary
Government & Local Authorities & non profit institutions
Universities
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 2012 reached 65% of current national
expenditure on education; out of this amount, 9% were directed towards pre-primary education
institutions (age 3 and up), 33% - to primary education and 23% - to secondary education.
The expenditure on tertiary educational institutions reached 23% of the current national
expenditure on education. The other 2% were directed to the administration of educational
services, and other types of educational services, such as adult education and courses, yeshivot
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(Jewish religious schools), other educational services, and purchasing textbooks and writing
supplies.
4. CURRENT EXPENDITURE ON EDUCATION,
BY LEVEL OF EDUCATION
2012
Secondary
education 23.2%
Tertiary education
22.5%
Courses for adults
0.5%
Other educational
services 5.5%
Yeshivot, Hebrew
teaching &
textbooks 3.4%
Primary education
33.1%
General
administration 2.9%
Total NIS 73.3 billion
Pre-primary
education 8.9%
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 2010 and 2012
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).
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.
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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 2011/12 (from October 2011 to
September 2012), 92.1% of the total expenditure of universities was current expenditure for goods
and services; approximately 5.7% was for student scholarships, awards, and other forms of
support; and 4.7% was capital formation in buildings and equipment. That same year, there was a
deficit of finance income to finance expenses (-2.5%).
In the 2011/12 academic year, 74.4% of the current expenditure for goods and services was
used for teaching and associated research; 17.7% was used for separately budgeted research.
The government financed approximately 58.0% of the expenditure of universities (by current
transfers) in 2011/12. 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 2015.
Comparison of Israel's data with other OECD countries for 2012 reveals that the level of
expenditure changes significantly from country to country. The share of national expenditure on
education out of the Gross Domestic Product was one of the highest compared to all other
countries examined (Diagram 5). In Israel, the national expenditure on education in institutions
reached 6.5% of the GDP, compared to an average of 5.3% in the OECD countries. In Iceland
and United States the percentage of expenditure was similar to Israel – 6.4% of the GDP.
It's important to mention that resulting from the transition to a new classification in education, this
year data on pre-primary education was omitted. Therefore, the total national expenditure of the
GDP in this year was lower (in Israel and other OECD countries); hence it is not comparable to
the 2012 data. This publication will not show data on pre-primary education.
However, when making this comparison, it is important to bear in mind that Israel has a higher
percentage of young people in its population than the OECD countries. Therefore, the
percentage of Israeli residents who work and can finance expenditures on education is relatively
smaller, and the percentage of students is relatively high. As a result, the expenditure on
education per pupil in Israel was lower. In 2012, the percentage of the population aged 0-24 in
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Israel reached 43.4%. By comparison, the percentages of the population aged 0-24 in other
countries were far lower and were 28.5% on the average (see below).
Population by Age Group 0-24 in Israel and Selected OECD Countries
Percent of total population, 2012
Israel
4.34
Norway
31.6
United Kingdom
6103
France
6103
Denmark
6106
Sweden
2.02
Netherlands
2.02
Belgium
2.00
Spain
2200
Germany
2300
Italy
2301
Source: OECD Statistics, Demography and Population.
Statistical Abstract of Israel No. 63, 2012
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5. NATIONAL AND PUBLIC EXPENDITURE IN EDUCATION INSTITUTIONS,
AS A PERCENTAGE OF GDP
2012
8
7
Percentages
6
5
4
3
2
1
Spain
Czech
Republic
Austria
France
OECD average
Mexico
Sweden
Netherlands
Australia
Finland
Portugal
United
States
United
Kingdom
Iceland
Israel
South Korea
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 F) shows
that in Israel the expenditure was higher in primary and secondary educational institutions and
pre-academic preparatory courses – 4.4% of the GDP, compared to 3.7% in the OECD.
However, in post-secondary and higher education, the expenditure as percent of the GDP in
Israel was 1.6%, almost the same as OECD countries – 1.5%.
The public expenditure on education in Israel (including expenditure of local authorities,
government ministries, National Insurance, public non-profit institutions and national institutions),
including scholarships to students, reached 5.2% of the GDP in 2012, higher than the average in
OECD countries – 4.8%.
- XIX -
Percentages
6. RELATIVE SHARE OF PUBLIC AND PRIVATE EXPENDITURE IN
EDUCATIONAL INSTITUIONS, AT ALL LEVELS OF EDUCATION
2012
100
90
80
70
60
50
40
30
20
10
0
Austria
Iceland
Czech
Republic
Spain
OECD Netherlands
average
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 2012 was 77.1%
(Diagram 6, Table I). The share of public expenditure in the national expenditure on education in
OECD countries ranged from 68% (United States) to 96% (Austria).
In primary and secondary educational institutions and in pre-academic preparatory courses in
Israel, the public finance in 2012 reached 88.9%, close to the average of OECD countries in the
same year – 90.6% and similar to the public financing in Spain – 88.7%.
In post-secondary and higher education, the financing from private sources was more common
and reached 47.6% in Israel, higher than the average in other OECD countries – 30.3%, and
lower than some countries: the United States – 62.2%, and Australia – 55.1%. However, in some
countries the private financing was particularly low: Iceland – 9.4%, Luxemburg – 5.2%, Austria
– 4.7%, Finland and Norway – 3.8% (Table I).
The share of public expenditure on education out of the total public expenditure (Diagram 7) in
Israel was 12.8% – higher than the average in OECD countries – 11.5%. The share of public
expenditure on primary, secondary education and pre-academic preparatory courses out of the
total public expenditure in Israel was 9.8%, higher than the average in OECD countries – 8.3%.
However the share of public expenditure on post-secondary and higher education out of the total
public expenditure in Israel was 2.3%, lower than the average in OECD member countries –
3.0% (Table G).
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7. PUBLIC EXPENDITURE ON EDUCATION, BY LEVEL OF EDUCATION,
AS A PERCENTAGE OF TOTAL PUBLIC EXPENDITURE
2012
25
Percentages
20
15
10
5
Spain
France
Czech
Republic
Austria
Netherlands
Belgium
Finland
United
States
OECD
average
Sweden
United
Kingdom
Israel
Norway
Ireland
South Korea
New
Zealand
0
All levels of education
Institntions of post-secondary and higher education
Institntions of primary, secondary 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).
16
8. EXPENDITURE ON EDUCATION PER PUPIL/STUDENT IN PUBLIC AND
PRIVATE INSTITUTIONS, BY LEVEL OF EDUCATION,
ISRAEL AND OECD COUNTRIES
2012
Thousand Dollars*
14
12
10
8
6
4
2
0
Primary education
Secondary education
OECD countries
*Based on purchasing power parity.
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Tertiary education
Israel
In primary education, the expenditure per pupil in Israel reached $6,931, similar to France
($7,013), but lower than the average in OECD countries – $8,247.
In 2012, the expenditure per pupil in secondary education in Israel totaled $5,689, lower than the
average in OECD countries – $9,518. In Slovakia and Mexico, the expenditure was lower than in
Israel, and reached $5,152, and $3,007 respectively. The expenditure per pupil was particularly
high, over $12,000, in Austria, the United States, Norway, the Netherlands and Belgium.
In post-secondary and higher education institutions, the expenditure per student on education in
Israel was $12,338, lower than the average in OECD countries – $15,028. In some of the
countries (Mexico, South Korea, Slovakia and Iceland) the expenditure per student was lower
than $10,000. (Diagram 9, Table D).
9. EXPENDITURE ON EDUCATION PER PUPIL IN PUBLIC AND PRIVATE
INSTITUTIONS, BY LEVEL OF EDUCATION
2012
Thousand Dollars*
30
25
20
15
10
5
Primary education
Pre-Primary education
*Based on purchasing power parity.
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Primary education
Mexico
Slovakia
Iceland
South Korea
Czech Republic
Israel
Spain
New Zealand
OECD average
France
Belgium
Ausria
Australia
Finland
Netherlands
Norway
Sweden
United Kingdom
United States
0
The data on the national expenditure distribution by educational level (Table E) reveals that the
expenditure per student in post-secondary and higher education institutions in Israel was almost
two times the expenditure per pupil in secondary educational institutions and was similar to the
United States, the United Kingdom, Sweden, Mexico and to the average of OECD countries. In
Spain the expenditure per pupil was similar to Israel.
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 and in pre-academic preparatory courses in Israel, the share of labor costs out of the
total current expenditure was 22%, higher than the average in the OECD countries – 79%. 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. The share of the
expenditure on fixed capital formation out of total expenditure in Israel was slightly higher than
the OECD countries.
In post-secondary and higher education institutions, the share of compensation of employees
from the total current expenditure in Israel reached 71%, similar to the Netherlands (70%), and
higher than the average of 67% in OECD countries.
The share of fixed capital formation in these institutions in Israel was 5%, lower than the average
in OECD countries – 10% (Table H).
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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
10. EXPENDITURE ON EDUCATIONAL INSTITUTIONS IN PRIMARY,
SECONDRY AND PRE-ACADEMIC PREPARATORY COURSES, FROM PUBLIC
AND PRIVATE SOURCES, BY TYPE OF EXPENDITURE
2012
Other expenditure
Labor costs
100
90
80
70
60
50
40
Labor costs
Other expenditure
- XXIV -
South
Korea
Czech
Republic
Australia
Finland
Sweden
Austria
United
States
Germany
OECD
average
Norway
Netherlands
Israel
Slovenia
Belgium
30
20
10
0
France
Percentages
10a. EXPENITURE ON EDUCATIONAL INSTITUTIONS IN POST-SECONDRY
AND HIGHER EDUCATION FROM PUPLIC AND PRIVATE SOURCES, BY
TYPE OF EXPENDITURE
2012