Media are touting a report by an ultra-left outfit called the Israel European Policy Network, which makes a horrendous allegation: the Israeli government subsidizes settlements 22 percent more than the Smaller Israel towns. Subsidies make up 57 percent of the settlements’ budgets, as opposed to 35 percent for towns inside the Green Line.
The report’s authors lumped small and heavily subsidized towns in Negev and Galilee together with tax-positive industrial cities. Among the small towns, subsidies of 50-60 percent are normal, and the norm is close to 100 percent in Israeli Arab towns.
The municipal budgets of the settlements also reflect their security needs. When Israel decided to cut short the security expenses at Gush Katif, we spent hundreds of times more on reinforcing Sderot, developing an anti-missile shield, and the Cast Lead operation.
Settlements receive just about $300 per head from the government.