The Israeli government on Sunday unanimously approved holding early elections on Jan. 22, 2013, according to a draft bill submitted by Prime Minister Benjamin Netanyahu last week.

Netanyahu's bill called to dissolve the 18th Knesset ( parliament) and hold elections in 100 days.

"Even during the three month election period, we will continue to act responsibly in order to safeguard the economy and, most importantly, maintain Israelis' jobs and even add to them," Netanyahu told ministers at the weekly meeting.

Netanyahu will dissolve the current Knesset on Monday, the day it reconvenes from its summer hiatus for the winter session.

Netanyahu's bid for an early election came as he failed to reach an agreement with his coalition partner regarding the upcoming 2013 budget, which is to suffer from cuts of up to NIS 15 billion (4 billion U.S. dollars) due to the growing deficit.

"Israel would be better served with an intensive three month- election campaign," Netanyahu said on Tuesday during a press conference in which he announced the move.

Financial experts believe that the upcoming elections period will cost the Israeli economy more than 2 billion NIS (526 million dollars), at the least.

According to local political analysts, Netanyahu is trying to take advantage of his party's good standing in the polls. On Thursday, polls showed Netanyahu a clear winner as the next prime minister.

A Tel Aviv University poll on behalf of the Ha'aretz daily showed the right-wing Likud's leader pulling in 57 to 62 percent of those polled, as the most appropriate candidate.

Some political analysts hypothesized that Netanyahu's growing popularity (alongside Labor party leader Shelly Yachimovich's decline in electoral attraction) is related to the country's hefty security agenda -- particularly the Iranian nuclear threat -- which looms over difficult socio-economic issues -- a major focus in the Labor party's platform.

The budget debate mainly centered on cuts in the Defense Ministry, and to educational and social programs, reductions staunchly opposed by, among others, ultra-Orthodox parties. Many of their electorate are elderly and include households of large families and the poor.