As well as the 54-seat Alignment (of which the Labor Party was the largest faction, alongside Mapam and the two Labor-affiliated Israeli Arab parties, Progress and Development and the Arab List for Bedouin and Villagers, which merged into the United Arab List towards the end of the Knesset term), Rabin also included the Independent Liberals, who held four seats, and Ratz, which had three. The coalition had only a one-seat majority, with just 61 of the 120 seats in the Knesset, and was the first in Israeli political history to not contain a religious party. This status lasted until 30 October when the National Religious Party (NRP) joined the coalition, taking the number of seats up to 71, although Ratz left on 6 November,[2] reducing the number by three. In forming the government, Rabin dropped the development portfolio.[3][4]
The government was dissolved by Rabin on 22 December 1976, following the abstention of the NRP on a vote of no confidence regarding an apparent breach of the Sabbath during a ceremony at an Israeli Air Force base,[2] but continued, without the NRP members, who all resigned on 22 December, as a caretaker government until the formation of the eighteenth government following the May 1977 elections. However, following the Dollar Account affair in March 1977, Rabin announced on 6 April that he was resigning as head of the Labor Party, and Minister of DefenseShimon Peres was unanimously elected to succeed him. As Israeli law prohibited resignation from a caretaker government, Rabin suspended himself from his duties as Prime Minister and Peres took his place as an unofficial acting Prime Minister.[5]