State Comptroller Matanyahu Englman on Wednesday issued a sweeping warning that Israel has failed to adequately prepare for several major economic challenges, including future natural gas supplies, rising mortgage risks, and oversight of billions of shekels in government spending.

In a series of 12 audits examining key sectors of the economy, Englman found a recurring pattern in which government ministries announced reforms and policies but failed to complete the practical steps necessary to implement them effectively.

One of the most significant concerns involves Israel’s natural gas reserves, which currently generate roughly 70% of the country’s electricity. While Israel exports large quantities of gas to neighboring countries, the comptroller found that officials have yet to finalize a long-term policy determining how much gas should be reserved for domestic use.

The report warned that existing recommendations may leave Israel with insufficient reserves in the coming decades, particularly as electricity demand rises due to population growth, expanding data centers, and extreme weather. Englman also noted that Israel lacks emergency natural gas storage facilities and has not developed a long-term strategy for the day when domestic gas reserves are depleted.

The audit also highlighted growing concerns in Israel’s housing market. Total mortgage debt has climbed to approximately NIS 630 billion, while the average mortgage has risen to around NIS 1 million. The share of higher-risk mortgages has increased significantly in recent years, raising concerns about household financial stability.

Englman criticized promotional housing deals that allow buyers to make minimal upfront payments while delaying most costs until later, warning that such arrangements may create financial difficulties once buyers are required to secure full mortgage financing. He also called for stronger oversight of mortgage advisers, who currently operate without formal regulation.

The report further examined government budgeting practices, finding that tens of billions of shekels in budget transfers were approved near the end of 2024, while additional requests were submitted too late for proper review. Englman warned that the process raises concerns about transparency and compliance with budget laws.

In the transportation sector, the comptroller found that Israel’s efforts to reduce vehicle pollution remain incomplete. The country’s truck fleet continues to age, electric vehicle infrastructure has not kept pace with demand, and no new clean-air zones have been established since those created in Jerusalem and Haifa.

Englman urged government ministries to move from planning to implementation, warning that delays in addressing these issues could have significant consequences for Israel’s economy, energy security, and long-term financial stability.

(YWN World Headquarters – NYC)