OECD Regulatory Policy Outlook 2025

Government Resolution No. 2118 of October 22, 2014 introduced regulatory impact assessment (RIA) in the regulation-making process, strengthened public consultation practices and provided the basis for more efficient regulatory oversight. The Principles of Regulation Law, 2021 established basic principles of quality regulation, as well as a dedicated and independent regulatory oversight body – the Israeli Regulatory Authority (ILRA).

RIA is obligatory for all government-initiated primary laws and subordinate regulations; this obligation does not apply to regulations initiated by the Knesset. Regulatory review, ex ante and ex post, have mostly focused on evaluating regulatory costs and other impacts. Evaluation of benefits is slowly being introduced.

Individual ministries are responsible for most legislative planning activities, with limited inter‑ministerial co‑ordination. All proposals undergo public consultation for a minimum of 3 weeks. Since 2020, all draft primary laws and subordinate regulations are systematically published on a central governmental website for public consultation where all comments are visible. Personalised alerts for specific stakeholders are being piloted. The public engagement unit launched a pilot project in 2023 testing a digital infrastructure to enhance consultations between government and businesses.

According to the 2021 Law, the ILRA will conduct ad hoc reviews of regulatory stock. The ILRA is currently developing principles for ex post evaluation, supplementing an existing guide on examining and reducing regulatory burdens.

The 2021 Law established the ILRA as a standalone agency responsible for central oversight, replacing the Better Regulation Department within the Prime Minister’s Office. It is led by a Chair, appointed by the Government, at the suggestion of the Prime Minister based on a recommendation by a professional committee. The ILRA’s functions include advising on regulatory policy and processes, advising on and scrutinizing the quality of RIAs, and conducting ad hoc evaluations of existing regulations. The ILRA also trains regulators and regulatory policy units located within line ministries.