The IDF brass says they can manage without them, but a lot of stam Israelis fell it is unfair for the Chareidim to be getting money from the State while refusing to do what (in their eyes) is a service to the State — the army duty, or contribute to the common basket by working. They agreee to free a large persentage from the army duty. They pay and they make the rules as to who get sthe money.
The Govermnent says that if someone refuses to serve, he should not get the benefits (except for the 25% of masmidim). That is fair, reasinable and quite generous.