How Budget Denial Harms Arab Communities and the Environment

Suspension of the Five-Year Economic Plan by Finance Minister Smotrich denies environmental funding to Arab Communities.

In 2021, Israel’s government passed Government Resolution 550 as a means to closing economic and social gaps in Arab society, and produced a Five-Year Economic Plan 550 of budget allocations in recognition of environmental conditions in Arab communities that pose serious risks to public health and quality of life. But the Ministry of Finance has failed to deliver on its legal obligation, leaving communities exposed to environmental hazards and violating fundamental rights. Five-Year Plan 550 earmarked NIS 550 million for environmental improvements in Arab localities, of which NIS 300 million was allocated from the Maintenance of Cleanliness Fund, and an additional NIS 250 million was to be provided directly by the Finance Ministry. The plan mandated an annual transfer of NIS 50 million over five years.

Environmental and human impacts of denying funding

In response to a Freedom of Information request, the Ministry of Environmental Protection confirmed that the Finance Ministry did not transfer the required budget for 2023 or 2024 – creating a shortfall of NIS 100 million. No legal process or Knesset committee decision has justified this budget freeze, making the Finance Ministry’s inaction both arbitrary and unlawful.

Five-Year Plan 550 was designed to address long-standing disparities between Jewish and Arab communities. By withholding the budget, the government is actively preventing Arab citizens from accessing the same environmental protections and quality of life improvements that are afforded to others.

This financial neglect has severe consequences for Arab citizens of Israel. Environmental hazards in Arab communities – such as inadequate waste management, pollution, and lack of climate resilience measures – pose direct threats to public health. By withholding the funds designated for addressing these risks, basic health and sanitation conditions remain unmet.

Call for immediate action

Adam Teva V’Din, together with the Arab non-profit organization Mossawa Center, have formally demanded that the Finance Ministry release the required NIS 100 million without delay. If no action is taken, legal proceedings will follow to ensure that the government upholds its responsibilities.

Attorney Amal Ziada

Attorney Amal Ziada, director of Adam Teva V’Din’s department of Environment & Arab Society, points out that: “Environmental justice is being denied to Arab communities that already face disproportional exposure to environmental harm,” adding that, “The Finance Ministry’s refusal to transfer the funds under Plan 550 contradicts a government resolution and undermines the rule of law. The government must act now to uphold its commitment to fair and equal treatment for all citizens.”

“The Finance Ministry’s refusal to transfer the funds under Plan 550 contradicts a government resolution and undermines the rule of law.”

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