The twenty-ninth government of Israel was formed by Ariel Sharon on 7 March 2001, following his victory over Ehud Barak in the special election for Prime Minister in February. It was the first, and to date only time an election for Prime Minister was held without parallel elections for the Knesset, and one of the first acts of the new government was to repeal the law which introduced separate elections. Despite his large margin of victory in the election, because there had been no Knesset elections, Sharon's Likud was not the largest party in the Knesset, resulting in the formation of a national unity coalition that at some point included Labor–Meimad, Shas, the Centre Party, the National Religious Party, United Torah Judaism, Yisrael BaAliyah, the National Union-Yisrael Beiteinu, the New Way and Gesher. Shas left the government on 23 May 2002, but returned on 3 June, whilst Labor–Meimad left on 2 November 2002.

The deputies of the prime minister of Israel falls into four categories; Acting Prime Minister, Deputy Prime Minister, Vice Prime Minister and Alternate Prime Minister. Vice Prime Minister is honorary and extra-constitutional position, but entitle the office-holder to a place in the cabinet. Deputy Prime Minister, Designated Acting Prime Minister, and Alternate Prime Minister are constitutional positions.