State Comptroller Matanyahu Engelman published a harsh report today (Tuesday) criticizing Israel’s economic management and the performance of the socio-economic cabinet during the war.
According to the report, former cabinet heads Avigdor Lieberman and Benjamin Netanyahu failed to prepare for an emergency despite repeated warnings. During the war, Finance Minister Bezalel Smotrich, who was authorized to head the cabinet, “did not exercise his powers,” and cabinet meetings stopped in December 2023. Engelman wrote that Prime Minister Netanyahu should have intervened to ensure effective civilian leadership but did not.
“The cabinet’s incompetence is reflected in the lack of a systemic response to the frontline communities and their residents,” the report states.
The Comptroller also sharply criticized the Finance Ministry’s economic management. The state budget, he found, did not include a dedicated emergency reserve. Although the Accountant General estimated a 30 billion shekel reserve, the Budget Department later reported that “the effective reserve was zero,” forcing the ministry to seek funds in real time.
Engelman warned that the flawed system of allocating and monitoring the war budget hindered informed decision-making. He called on the Finance Minister to establish a permanent mechanism for economic emergency preparedness and promote policies that would strengthen Israel’s financial resilience.