The Israeli parliament has voted by 58 votes to 52 with one abstention in favour of the 1998 budget. The foreign minister, David Levy who submitted his resignation on Sunday, voted against it along with the four other members of his Gesher faction. From Jerusalem Lyse Doucet reports.
When the numbers flashed on a parliamentary screen an anxious Benjamin Netanyahu broke into a broad smile, his budget passed by six votes.
Only one member of his Likud party, Benny Begin, abstained. Another Likud rebel stayed away.
Mr Netanyahu's weakened coalition had survived its first test as expected, but the departure of the foreign minister, David Levy and his Gesher faction has left Mr Netanyahu far more vulnerable.
The Prime Minister's coalition of right-wing and religious forces backed him on the budget. They won't fall into line over the next big issues including the scope of Israel's troop redeployment from the West Bank.
Some politicians have already warned they're ready to bring down the government to stop Israel from making any more concessions to the Palestinians.
Mr Netanyahu, trying to convey an image that it's business as usual, is set to meet Washington's Mid-East envoy Dennis Ross on Tuesday. But Mr Ross's business is to urge Israel not to further delay its tough decisions in the peace process.