Netanyahu has led a minority government since last year and on Tuesday voiced concern before the vote about securing the backing of ultra-Orthodox lawmakers who left the government in July.

“I think the last thing we need right now is elections,” he said. “We’ll have elections later on this year, but I think it’s a mistake to have them now,” he added.

Failure to pass the budget by March 31 would automatically trigger the dissolution of parliament and elections would have to be held before the end of the current parliamentary term in November.

The 120-member Knesset approved the budget bill at first reading by 62 votes to 55.

Recent days have seen intense political manoeuvring, but Shas, the main ultra-Orthodox party, voted in favour, as did some Ashkenazi ultra-Orthodox members of parliament, handing Netanyahu a reprieve.

Ultra-Orthodox parties, which left the government but are refusing so far to bring it down, threatened not to back the budget bill if Netanyahu does not make good on his promise to pass a law exempting religious students from conscription.

Under a ruling established at the time of Israel’s creation in 1948, men who devote themselves full-time to studying Jewish texts are given a de facto pass from mandatory military service.

However, this exemption has come under mounting scrutiny from the rest of Israeli society, particularly when tens of thousands of conscripts and reservists are mobilised on several fronts, despite the fragile truce that has ended the war in Gaza.

The dates for the second and third readings of the bill have not been announced.

In the meantime, Netanyahu will have to find a compromise to secure the ultra-Orthodox vote.

Netanyahu is head of Israel’s main right-wing Likud party.

He turned 76 in October and has served as prime minister for more than 18 years.

He has already secured the nomination to lead the party into the next elections.