n 2010, the government's proposed budget for social expenditure amounted to NIS 140.22 billion. The sum was for financing and developing social security and direct services such as education, welfare, health, immigration services and housing. Government spending on social expenditure as a proportion of GDP has fallen 6% over the past year from 23% of GDP in 2000 to 17% today. Over the same period, Israel's GDP has risen 31%, the CPI has risen 25% and the population has grown 15%. In terms of the change in the OECD average, while the average rate of growth of social spending as an overall proportion of GDP in OECD member countries from 1982-2007 was two percentage points, Israel showed a fall of 1.2 percentage points. According to the OECD report, Israeli expenditure on all levels of education is 11-33% lower than the other countries in the organization. The comparison carried out by the National Insurance Institute between Israel's social security system and other OECD countries found that in Israel, the part of the National Insurance contribution paid by employees is higher than that of the employer, while in the rest of the OECD countries the situation is reversed. The National Insurance contribution paid by employers for employees in Israel is lower than the other OECD states as well as National Insurance collection as a percentage of GDP. From the point of view of state transfer payments, allowance for the first child is particularly low while Israel's pension payments are also lower than in most OECD countries.
Alongside erosion in government social spending, two important processes are taking place - privatization of social services together with strengthening of the third sector. In education, since the economic crises of the 1980s, school hours have been cut by 30%, while during the 1990s unofficial education expanded to reach 63% of school levels. At the start of the last decade, private schools became common and organizations like the Rashi Foundation, the Karev Fund and Branco Weiss Institute expanded their involvement in the education system. In a survey carried out in 2008 of 180 elementary and junior high schools, it was found that business organizations and funds were involved in the activities of 90% of schools.
In the area of health, as part of the health service arrangements for all Israelis enacted under the State Health Insurance Law of 1994, all citizens must buy health insurance. From the Arrangements Law in 1998, self-contributions for visits to doctors and medications rose and supplementary insurance activities expanded.