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Loss of supply occurs where a government in a
parliamentary democracy A parliamentary system or parliamentary democracy is a system of democracy, democratic government, governance of a sovereign state, state (or subordinate entity) where the Executive (government), executive derives its democratic legitimacy fr ...
using the
Westminster System The Westminster system or Westminster model is a type of parliamentary A parliamentary system or parliamentary democracy is a system of democratic Democrat, Democrats, or Democratic may refer to: *A proponent of democracy Democracy ...
or a system derived from it is denied a supply of treasury or exchequer funds, by whichever house or houses of parliament or head of state is constitutionally entitled to grant and deny supply. A defeat on a budgetary vote is one way by which supply can be denied. Loss of supply is typically interpreted as indicating a loss of confidence in the government. Not all "money bills" are necessarily supply bills. For instance, in Australia, supply bills are defined as "bills which are required by the Government to carry on its day-to-day business". When a loss of supply occurs, a
prime minister A prime minister or a premier is the head of the cabinet Cabinet or The Cabinet may refer to: Furniture * Cabinetry, a box-shaped piece of furniture with doors and/or drawers * Display cabinet, a piece of furniture with one or more transpa ...
is generally required either by constitutional convention or by explicit constitutional instruction to either resign immediately or seek a parliamentary dissolution. Some constitutions, however, do not allow the option of parliamentary dissolution but rather require the government to be dissolved or to resign. A similar deadlock can occur within a
presidential system A presidential system, or single executive system, is a form of government in which a head of government (President (government title), president) leads an Executive (government), executive branch that is separate from the legislative branch in s ...
, where it is also known as a
budget crisis A budget crisis is an informal name for a situation in which the legislative and the Executive (government), executive in a presidential system deadlock and are unable to pass a budget. In presidential systems, the legislature has the power to pas ...
. In contrast to parliamentary systems, the failure of the legislature to authorize spending may not in all circumstances result in an election, because some such legislatures enjoy fixed terms and so cannot be dissolved before a date of termination, which can result in a prolonged crisis. A deadlock between a
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and the legislative body can give rise and cause for a head of state to prematurely dismiss the elected government, requiring it to seek re-election. If a government maintains the support of a majority of legislators or the elected parliamentary representatives, the blocking of supply by a head of state would be seen as an abuse of authority and power. Many western countries have removed or restricted the right of a head of state to block supply or veto a government budget unless there is overwhelming justification and cause for such action.


Examples of the threat or loss of supply

* In 1909, the
UK
UK
House of Lords The House of Lords, formally The Right Honourable the Lords Spiritual and Temporal of the United Kingdom of Great Britain and Northern Ireland in Parliament assembled, is the of the . Membership is by , or . Like the , it meets in the . ar ...

House of Lords
voted against the "
People's Budget The 1909/1910 People's Budget was a proposal of the Liberal government that introduced unprecedented taxes on the lands and incomes of Britain's wealthy to fund new social welfare programmes. It passed the House of Commons The House of Commo ...
", precipitating two general elections and the
Parliament Act 1911 The Parliament Act 1911 (1 & 2 Geo. 5 c. 13) is an Act of the Parliament of the United Kingdom The Parliament of the United Kingdom is the supreme legislative body A legislature is a deliberative assembly with the authority to make l ...

Parliament Act 1911
, which limited the power of the Lords. * In the 1975 Australian constitutional crisis, the elected
Senate The Curia Julia in the Roman Forum ">Roman_Forum.html" ;"title="Curia Julia in the Roman Forum">Curia Julia in the Roman Forum A senate is a deliberative assembly, often the upper house or Debating chamber, chamber of a bicameral legislatu ...
delayed voting on a bill to authorize supply for the government demanding that the
Prime Minister A prime minister or a premier is the head of the cabinet Cabinet or The Cabinet may refer to: Furniture * Cabinetry, a box-shaped piece of furniture with doors and/or drawers * Display cabinet, a piece of furniture with one or more transpa ...
,
Gough Whitlam Edward Gough Whitlam (; 11 July 191621 October 2014) was the 21st prime minister of Australia The prime minister of Australia is the head of government The head of government is either the highest or second highest official in the ex ...
, call an election for the
House of Representatives House of Representatives is the name of legislative bodies A legislature is a deliberative assembly A deliberative assembly is a gathering of members (of any kind of collective) who use parliamentary procedure Parliamentary procedure is ...

House of Representatives
. Whitlam was dismissed by the Governor-General, Sir John Kerr, on the basis of his refusal to either resign or request a dissolution. * In December 1979 in Canada, the
Progressive Conservative Progressive Conservative may refer to an advocate of progressive conservatism. Progressive Conservative may also refer to: Canada * Progressive Conservative Party of Canada, a former Canadian federal party; a successor of the original Conservati ...
government of
Joe Clark Charles Joseph Clark (born June 5, 1939) is a Canadian statesman, businessman, writer, and politician who served as the 16th prime minister of Canada The prime minister of Canada (french: premier ministre du Canada, link=no) is the First ...
was defeated on a budget vote. Clark called the 1980 Canadian federal election as a result.
Pierre Trudeau Joseph Philippe Pierre Yves Elliott Trudeau ( , ; October 18, 1919 – September 28, 2000), also referred to by his initials PET, was a Canadian politician who served as the 15th prime minister of Canada The prime minister of Canada ...

Pierre Trudeau
and the
Liberals Liberal or liberalism may refer to: Politics *a supporter of liberalism, a political and moral philosophy **Liberalism by country *an adherent of a Liberal Party Arts, entertainment and media *''El Liberal'', a Spanish newspaper published betw ...
won a majority of seats in the
House of Commons of Canada The House of Commons of Canada (french: Chambre des communes du Canada) is the lower chamber of the bicameral Parliament of Canada, which also comprises the Monarchy of Canada, sovereign (represented by the Governor General of Canada, governor ...
. Clark resigned as prime minister and was replaced by Trudeau. * The defeat of
Garret FitzGerald Garret Desmond FitzGerald (9 February 192619 May 2011) was an Irish Fine Gael Fine Gael (, ; English language, English: "Family (or Tribe) of the Irish"), officially Fine Gael (United Ireland), is a Liberal conservatism, liberal-conservative ...
's government in a budget vote in
Dáil Éireann Dáil Éireann ( , ; ) is the lower house A lower house is one of two chambers Chambers may refer to: Places Canada: *Chambers Township, Ontario United States: *Chambers County, Alabama *Chambers, Arizona, an unincorporated community i ...
in the
Republic of Ireland Ireland ( ga, Éire ), also known as the Republic of Ireland ('), is a country A country is a distinct territorial body or political entity A polity is an identifiable political entity—any group of people who have a collective id ...

Republic of Ireland
in 1982. FitzGerald immediately sought and was granted a Dáil dissolution.Dáil debate
Vol.332 cc.380–414
*On 9 March 2011, the
Legislative Council A legislative council is the legislature, or one of the legislative chambers, of a nation A nation is a community of people formed on the basis of a common language, history, ethnicity, or a common culture, and, in many cases, a shared terri ...
of
Hong Kong Hong Kong (; , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (HKSAR), is a city A city is a large human settlement.Goodall, B. (1987) ''The Penguin Dictionary of Human Geography''. London: Pe ...

Hong Kong
blocked a resolution for provisional appropriations, which, before 2011, had always been a matter of formality. Resolutions for provisional appropriations had never been voted by
division Division or divider may refer to: Mathematics *Division (mathematics), the inverse of multiplication *Division algorithm, a method for computing the result of mathematical division Military *Division (military), a formation typically consisting o ...
until 2011. The government decided, on the following day, to table another resolution with a minor change being made merely for the sake of circumventing procedural requirements that a negatived question cannot be tabled again. * On 13 February 2019, the
Spanish Government gl, Goberno de España eu, Espainiako Gobernua , image = , caption = Logo of the Government of Spain , label1 = Role , data1 = Executive power ''Executive Power'' is Vince Flynn's fifth novel, and the fourth to featu ...
lost a vote on a budget bill, 191-158, thanks to two allies of the Government,
Republican Left of Catalonia The Republican Left of Catalonia ( ca, Esquerra Republicana de Catalunya, ERC; ) is a pro-Catalan independence, social-democratic political party A political party is an organization that coordinates candidates to compete in a country's e ...
and the
Catalan European Democratic Party The Catalan European Democratic Party ( ca, Partit Demòcrata Europeu Català, PDeCAT, sometimes stylized as PDECat), initially branded as the Catalan Democratic Party ( ca, Partit Demòcrata Català, PDC), is a Catalan nationalist and liberal p ...
, siding against it. A
snap election Snap or SNAP may refer to: Arts and entertainment * ''Snap'' (film), the original release title for the 2013 film ''Enter the Dangerous Mind'' *''Snap'' (TV series), a CITV programme * ''Stanly News and Press'', a newspaper in Albemarle, North C ...
was immediately called, which eventually led to a new election and finally a second Sánchez Government. Both of those parties eventually sided with the new Government to pass the 2021 Budget.


References

{{Reflist Fiscal policy
Political terminology Technical terminology of politics Politics (from , ) is the set of activities that are associated with making decisions in groups, or other forms of power relations between individuals, such as the distribution of resources or status. The ...
Westminster system