Netanyahu increased the number of seats that his party held in the last election. However, he did it at the expense of other right-wing parties. As a result, the pool of potential coalition parties decreased. The situation was further aggravated when Avigdor Lieberman said his party wouldn't join a coalition. As a result, Netanyahu was only able to form a coalition with the minimum number of votes necessary, basically giving the extremists a blank check in exchange for their support. The extremists took advantage and the result is a government that is unbelievable:
Defense Minister: Moshe Yaalon -- recently said, "we are going to hurt Lebanese civilians to include kids of the family. We went through a very long deep discussion … we did it then, we did it in [the] Gaza Strip, we are going to do it in any round of hostilities in the future." He also suggested that Israel would use a nuclear bomb against Iran.
http://electronicintifada.net/blogs/asa-winstanley/israeli-defense-minister-promises-kill-more-civilians-and-threatens-nuke-iran
Deputy Defense Minister: Eli Ben-Dahan -- said in a published interview that the "souls of all Jews are higher than those of Christians or Muslims or anybody else"
http://www.jpost.com/Opinion/Op-Ed-Contributors/Ben-Dahan-must-go-336815
He also said about Palestinians: "For me they are brutes, they are not human". His current position gives him responsibility over the West Bank and the Palestinians who live there.
http://news.nana10.co.il/Common/GeneralModules/Ticker/PopUp.asp?ServiceID=126&ArticleID=995608&Inews=0&utm_source=mivzakimnet&utm_medium=ticker&utm_campaign=mivzakimnet
(If you don't read Hebrew, use Google Translate)
Justice Minister: Ayelet Shaked -- Has euphemistically called for genocide against the Palestinians and more explicitly called for killing Palestinian mothers so that they cannot give birth to children.
http://www.independent.co.uk/voices/why-im-on-the-brink-of-burning-my-israeli-passport-9600165.html