JERUSALEM • A showdown that may topple the Israeli government deepened over the weekend, resulting in the rare cancellation of the Cabinet's weekly Sunday meeting.

The latest spat between Prime Minister Benjamin Netanyahu's Likud party and Defence Minister Benny Gantz's Blue and White revolves around Likud's proposed 8.5 billion shekel (S$3.4 billion) supplement to the government's coronavirus relief programme.

Mr Gantz said the details of the expensive programme are incomplete, while Likud said Blue and White is withholding much-needed aid from Israeli citizens.

The dispute is part of a larger feud that is clouding the coalition's survival. The government is required by law to pass a budget by late this month, but Mr Netanyahu is baulking at honouring a provision in their coalition agreement to craft a two-year spending plan. If no budget is approved by that deadline, or the law is not amended, Parliament will be dissolved and a fourth election in less than two years will be held.

A two-year spending plan would deny Mr Netanyahu the ability to bring down the government over the budget next year, before Mr Gantz is to take over as premier in November 2021 under their deal.

Likud says officials have to move quickly on the budget to anchor the virus-hit economy.

BLOOMBERG