The cabinet was approved by a vote of 56 to 18, indicating strong support for Mr. Arafat. Reports said dissenters wanted to carry out more sweeping changes to the administration and limit his authority.
The United States and Israel have called for democratic and security reforms in the Palestinian Authority. Israel accuses Mr. Arafat of doing nothing to stop Palestinian militants from attacking Israelis.
In his speech to Palestinian lawmakers meeting in the West Bank town of Ramallah today (Tuesday), Mr. Arafat again condemned terrorist attacks against civilians. But he accused Israel of using the reform issue as a pretext to try to destroy the Palestinian Authority.
In incidents of violence, Israeli troops killed one Hamas activist in the West Bank town of Tubas, and destroyed the family home of another suspected militant in Jenin.
Israeli soldiers also dismantled an illegal settlement outpost (Havat Gilad), without resistance from about 20 Jewish settlers living there. Last week, settlers scuffled with soldiers trying to evacuate them.
A growing dispute over funding for Jewish settlements in the occupied territories is threatening to bring down Israel's coalition government. Prime Minister Ariel Sharon is threatening to fire Labor Party ministers, if the moderate party votes against the government's budget proposals.