The Prime Minister’s Office is worried about a collapse in the government’s fragile coalition if the state budget does not attain a majority when it comes up for a vote in the Knesset in two weeks.

MK Uzi Landau, head of the "Likud Faithful" Knesset bloc, said that his group will vote against the budget if the Prime Minister does not agree to hold a referendum on the question of expelling Jews from their homes in Gaza and northern Samaria.

Landau’s move may ultimately topple the government and force new elections. A lot depends on whether the Shas party remains firm in its opposition to the State budget proposal, as well as the positions of other opposition parties, including various Arab Knesset factions.

Israeli law calls for new elections if the budget bill fails to pass.