Senior officials in Israel’s Finance Ministry are expressing strong opposition to the government’s proposed Basic Law protecting Torah learning, warning that its long-term economic impact could be severe, including the possibility of a 16% increase in direct taxes.

According to the Finance Ministry, enshrining limud haTorah as a fundamental value of the State could significantly alter budget priorities, divert government resources, and expand financial commitments in ways that cannot yet be fully calculated.

The ministry further warned that the bill’s economic implications extend beyond funding for yeshivos. Officials claimed it could affect government efforts regarding chareidi enlistment and employment, increase the burden on miluim soldiers, and negatively impact Israel’s long-term economic growth. In its strongest warning, the ministry said that if current trends continue, Israel could eventually be forced to raise direct taxes by as much as 16%.

An earlier version of the bill explicitly compared the contribution of lomdei Torah to those serving in the IDF, but that language was removed following public criticism. The current version states that the State of Israel places supreme importance on encouraging limud haTorah and supporting lomdei Torah, recognizing that those who dedicate themselves to long-term Torah study make a significant contribution to Klal Yisroel and the State of Israel.

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