A political crisis is looming in East Timor after a coalition of opposition parties rejected the new government's policy program for a second time.

The opposition, which controls a majority in parliament, voted to reject the government's amended budget late Tuesday.

Prime Minister Mari Alkatiri said Wednesday he will keep fighting, as his party officials accused the opposition of trying to overthrow the government.

Alkatiri's Fretilin party formed a minority government after parliamentary elections in July failed to give any party a majority of seats. But his opponents argued that the minority government was unconstitutional and that his program didn't address the young country's problems.

East Timor, a former Portugal colony, gained independence from Indonesia after a U.N.-sponsored referendum in 1999.