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A preliminary coalition discussion of the 2015-6 budget was postponed after a meeting between Finance Minister Moshe Kahlon and United Torah Judaism’s (UTJ) Yaakov Litzman ended in sharp disagreement over subsidies.

The government must approve the state budget next month, before presenting it to the Knesset. Failure for the Knesset to approve the budget would be considered a vote of no confidence in the government. The coalition was scheduled to hold its first discussion on the issue yesterday, but Saturday evening’s meeting between Kahlon and Litzman ended in acrimony.

Litzman said he would not allow the Finance Ministry to renege on a pledge given by Prime Minister Benjamin Netanyahu to restore child benefits and subsidies for religious seminaries. Netanyahu agreed to the provisions as part of the agreement which brought UTJ into the coalition. Senior UTJ MK Moshe Gafni commented, “Treasury officials say that these are tough times, so we need to change the coalition agreements, but they are not allowed to intervene in political agreements.” YNet quotes a Finance Ministry official who said that the money is simply not available if the treasury is to meet its fiscal targets, commenting “When Kahlon says we can’t do it, he’s not joking.” Meanwhile, another coalition member, Shas leader Aryeh Deri has threatened a coalition crisis if promises over removing VAT from basic household goods are not upheld.

Netanyahu triggered further coalition consternation yesterday when he effectively postponed by three months a bill supported by Jewish Home and sections of his own Likud Party which would make it easier to sentence terrorists to death. Netanyahu won approval from his Likud faction to refer the matter to a professional panel.

In addition, the government has still not resolved other outstanding issues, including the deal agreed with the main investors in the country’s natural gas industry over future financial arrangements. A Knesset vote to authorise the government to conclude the deal was recently postponed after the coalition failed to muster the requisite support.