Mr Netanyahu and Finance Minister Yuval Steinitz have been discussing budget cuts worth $3.9 billion, likely to be reduced to $2.6 billion given the upcoming elections.
Meanwhile, pre-election tensions have been surfacing between Mr Netanyahu and Defence Minister Ehud Barak.
According to a Channel 2 report, Mr Netanyahu hit out at Mr Barak during a meeting on the budget. In the meeting, with Finance Minister Yuval Steinitz, Mr Netanyahu reportedly accused Mr Barak of creating tension between Israel and the US during a recent visit to America.