Netanyahu said in August that the argument between him and the attorney general's office represented a "clash of two views – a decision by the clerks or a decision by the people."
The IDF Spokesperson's Unit said it had never made such a claim, and that the comments at the government meeting were "taken out of context."
Daycare subsidies are economic incentive for ultra-Orthodox men to continue yeshiva despite legal requirement to enlist.
Members of the cabinet, including the Prime Minister criticized the Attorney-General's response to comparisons between the government and Nazi officials.
Attorney General Baharav-Miara directed prosecutors to seek a strike injunction. Histadrut's Bar-David criticized political delays and emphasized urgent hostage negotiations.
After a 3 month extension of daycare subsidies were approved for Yeshiva students on Tuesday, Labor Minister Ben-Tzur said the decision will lead to 'total chaos,' and at least one year is required.
On Sunday, the IDF court had granted the IDF prosecution's request to extend until Tuesday the detentions of the five prison guards.
Attorney-General Baharav-Miara’s office sent a letter to cut childcare subsidies worth between NIS 1,000-1,700 per child to yeshiva students who are ignoring call-up notices.
According to a number of reports, which could not be confirmed, Levin said that the government should return to the reform "at full force."
The attorney-general's ruling will likely lead to a financial blow to thousands of haredi families just weeks before a new school year begins.