JERUSALEM -- Prime Minister Ariel Sharon's coalition Monday failed to defeat two no-confidence motions. However, he remains in government because the opposition did not muster the 61 votes needed to bring him down.

The two no-confidence motions that passed were tabled by Shas and Am Ehad factions over the government's economic policy. Finance Minister Binyamin Netanyahu has cut social benefits and the number of poor people in Israel has risen.

It is the first time that the coalition failed to quash no-confidence motions, the Ha'aretz newspaper said.

Labor, the biggest opposition party, also tabled a no-confidence motion in Sharon's government but it was defeated 46 to 45.

Sharon will Wednesday face a greater challenge when he presents the government's proposed budget for 2005. He has won the support of the ultra-orthodox Yahadut Hatora (Torah Judaism) faction, promising their institutions NIS 290 million (some $66 million) but his biggest coalition partner, Shinui, that opposes this deal, is threatening to vote against the budget.

If Shinui quits the government Sharon might try to bring aboard Labor and Yahadut Hatorah.

Copyright 2004 by United Press International