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Jerusalem reports record budget: what does it mean for residents?

The Jerusalem Municipality says the 2026 budget will reach NIS 10.55 billion. Will quality of life improve?
Jerusalem light rail on Jaffa Street with pedestrians in the city center
The Jerusalem light rail in the city center, as the municipality advances its 2026 budget plans (Photo: Jerusalem Online News – Yuli Kraus)

Jerusalem’s municipal finance committee has approved the city’s 2026 budget, set at NIS 10.55 billion – an increase of 8.4% compared to last year. Combined with the development budget, approved last December at around NIS 6.2 billion, the total municipal budget reaches approximately NIS 16.75 billion. Final approval is still pending a vote by the city council in the coming days.

The increase continues a multi-year trend: since 2022, the operating budget has grown by about 37%, from NIS 7.68 billion to its current level. The figures reflect a steady expansion in municipal spending alongside population growth and broader service demands.

How is the Jerusalem budget allocated?

Education remains the largest sector, with a budget of NIS 3.66 billion – an increase of roughly NIS 300 million. Welfare spending stands at NIS 1.43 billion, as part of a broader community administration budget of about NIS 1.6 billion.

Culture, sports and leisure receive NIS 665 million. The planning administration grows by 12%, with transportation and infrastructure rising by around 17%. Operational services increase by 5.7%, including additional funding for emergency preparedness and security.

Will the budget improve daily life in Jerusalem?

The expanded budget is intended to support services and infrastructure, but its real impact will depend on implementation and priorities set during the year. While funding increases target key areas such as education, welfare and infrastructure, questions remain about how resources will be distributed across neighborhoods and whether long-standing urban challenges will be addressed.

Jerusalem Mayor Moshe Lion said: “The 2026 budget reflects our commitment to continued municipal investment in strengthening Jerusalem. We are investing in education, welfare, security, culture and infrastructure – and the results are already visible on the ground. Jerusalem continues to move forward, renew itself and lead, and we will keep working decisively for its future and for the quality of life of its residents.”

Final approval of the budget is expected at the upcoming city council meeting.