Party Financing Law - 1973
(including Amendments as of 1994)
I. DEFINITION OF TERMS
- "A Faction" - A Party which presented a list of candidates in the
previous elections to the Knesset and is represented by at least one
A Party whose representative(s) in the Knesset have been duly recognized
by the Knesset Committee as a faction.
An amalgam of two or more Parties in the Knesset who have formed a
- "List of Candidates" - As set forth in the Elections Law. (In place of
a Faction; when dealing with a political party not represented in the
Knesset at the time of elections.)
- "Election Expenses" - Those special expenses incurred by a Faction, or
by a List of Candidates, during the election period or expended during the
campaign for the Knesset.
- "Financing Unit" - A set monetary sum (per unit) which has been
determined by the Public Committee to be the "Financing Unit" for the
purposes of this law, and has been duly published in Reshumot. (The amount
of one (1) Financing Unit for the 1992 Knesset elections was 664,000 NIS.)
II. FINANCING OF FACTIONS
Every Faction is entitled to financing of:
- Expenses incurred during the election campaign, and;
- Ongoing expenses, on a month to month basis, beginning with the month
after the publication of the results of the Knesset elections until the
month of the publication of the next Knesset elections.
A faction which has received more than one per cent (1%) of the valid
votes cast in the Knesset election but has not received enough votes to
have won a Knesset seat is entitled to one (1) "Financing Unit" to cover
its election expenses.
The funds for financing will be disbursed by the Treasury, through the
Speaker of the Knesset, into the bank accounts of the Factions.
In the case of runoff elections for the Prime Minister under article 13 of
Basic Law: The Government, each of the Factions or Lists of Candidates
which are identified with the two candidates for Prime Minister will be
eligible for an extra sum (to cover election expenses) in the amount equal
to eight (8) Financing Units.
Financing for election expenses incurred by a New Faction, as set forth
under article 16, shall be set at one (1) Financing Unit per each member
of Knesset elected on its list plus an additional sum equal to one (1)
A Faction shall be entitled to receive financing at the rate of one (1)
Financing Unit per mandate won in the previous Knesset elections coupled
with one (1) Financing Unit per mandate won in the current Knesset
elections, divided by two (2), plus one (1) additional Financing Unit.
Ongoing expenses of each Faction shall be funded at the rate of five
percent (5%) of a Financing Unit per month per Member of the Knesset in
A Faction which has presented the Speaker of the Knesset with
certification by the Chairman of the Central Election Commission that it
has presented a list of candidates for the next Knesset election shall
receive an advance payment for its election expenses; this advance shall
be sixty per cent (60%) of each Financing Unit per member of the Knesset
listed as a Faction member on the day which the list of candidates was
Each Faction shall appoint an accountant who will be responsible for
auditing the Faction's accounts, preparing financial reports.
The State Comptroller shall have the right to determine guidelines, for
the accountants of the Factions, regarding the manner in which accounts of
the Factions and Lists of Candidates shall be audited.
A Faction or a List of Candidates may not receive a loan, except from a
A Faction may not receive any funding whatsoever from a commercial entity,
corporation or business partnership.
No faction may receive a contribution, directly or indirectly, from an
individual (i.e. a noncommercial entity), in excess of the sum of five
hundred (500) NIS from any person or his dependents. In an election year,
for either the Knesset or the Local Authorities, this sum shall be one
thousand (1,000) NIS. (These sums are linked to the Consumer Price Index.)
A List of Candidates shall not expend more than ten (10) Financing Units
for election expenses.
A Faction comprising five (5) Members of the Knesset or less shall not
expend more than ten (10) Financing Units for election expenses.
A Faction comprising more than (5) five Members of the Knesset but less
than ten (10) Members of the Knesset shall not expend more than twice the
number of Financing Units per Member of Knesset in the Faction.
A Faction comprising ten (10) or more Members of the Knesset shall not
expend more than twice the the number of Financing Units per the first ten
Members of the Knesset in the Faction and one and one half (1 1/2) the
number of Financing Units per each additional Knesset Member.
In the course of a calendar year no Faction may expend for ongoing
expenses an amount equal to more than one and three fifths (1 3/5) of the
sum to which it is entitled to receive (via funding by the Treasury).
A Faction or List of Candidates may not receive a financial contribution
from someone who is not eligible to vote in the elections.
Every Faction shall submit to the Speaker of the Knesset its yearly
balance sheet and its yearly report of income and expenditures. These
documents shall be open to public examination in the manner which will be
determined by the Speaker.
Funds received by a Faction according to a decision by the General
Federation of Labor in order to fund election campaigns within the
Federation or one of its constituent unions shall not be deemed a
violation of this law.