Yushchenko dissolved the legislature and called early polls for December 7 after his ruling "orange" coalition with Prime Minister Yulia Tymoshenko collapsed after the premier's party sided with the opposition in passing a law to cut his presidential powers.
First Deputy Prime Minister Oleksandr Turchynov said as quoted by the agency 15 members of the cabinet voted in favor of the decision to withhold campaign funds and against new early elections, with nine voting "against."
Speaking at a cabinet session before the vote, Tymoshenko reiterated that she opposed the snap election - the third since 2004 street protests brought Yushchenko to power - which would "lead to chaos and destruction" as the economy has been affected by the global credit crisis.
"I am calling on the president to cancel early elections and do everything to ensure the country runs smoothly," Tymoshenko said.
The government had been ordered to allocate $80 million from the state reserves for the election campaign on Monday. Tymoshenko's bloc also filed an appeal against the presidential decree with a Kiev court, which blocked preparations for the polls on Saturday.
Yushchenko responded by ordering the court abolished on Monday. The premier said her party would challenge the order.
Yushchenko and Tymoshenko, leaders of the 2004 "orange revolution," have drifted apart over a host of issues, including more recently over Russia's war with Georgia in August.
Both are expected to run for president in 2010.