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Loss of supply occurs where a government in a
parliamentary democracy A parliamentary system, or parliamentarian democracy, is a system of democratic governance of a state (or subordinate entity) where the executive derives its democratic legitimacy from its ability to command the support ("confidence") of the ...
using the Westminster System 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, premier or chief of cabinet is the head of the cabinet and the leader of the ministers in the executive branch of government, often in a parliamentary or semi-presidential system. Under those systems, a prime minister is ...
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, typically with the title of president, leads an executive branch that is separate from the legislative branch in systems that use separati ...
, 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 in a presidential system deadlock and are unable to pass a budget. In presidential systems, the legislature has the power to pass a budget, but the exe ...
. 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
head of state A head of state (or chief of state) is the public persona who officially embodies a state Foakes, pp. 110–11 " he head of statebeing an embodiment of the State itself or representatitve of its international persona." in its unity and ...
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
House of Lords The House of Lords, also known as the House of Peers, is the upper house of the Parliament of the United Kingdom. Membership is by appointment, heredity or official function. Like the House of Commons, it meets in the Palace of Westminst ...
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 in 1909 but was blo ...
", 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. It is constitutionally important and partly governs the relationship between the House of Commons and the House of Lords, the two Houses of Parlia ...
, which limited the power of the Lords. * In the
1975 Australian constitutional crisis The 1975 Australian constitutional crisis, also known simply as the Dismissal, culminated on 11 November 1975 with the dismissal from office of the prime minister, Gough Whitlam of the Australian Labor Party (ALP), by Governor-General Sir Jo ...
, the elected
Senate A senate is a deliberative assembly, often the upper house or chamber of a bicameral legislature. The name comes from the ancient Roman Senate (Latin: ''Senatus''), so-called as an assembly of the senior (Latin: ''senex'' meaning "the e ...
delayed voting on a bill to authorize supply for the government demanding that the
Prime Minister A prime minister, premier or chief of cabinet is the head of the cabinet and the leader of the ministers in the executive branch of government, often in a parliamentary or semi-presidential system. Under those systems, a prime minister is ...
,
Gough Whitlam Edward Gough Whitlam (11 July 191621 October 2014) was the 21st prime minister of Australia, serving from 1972 to 1975. The longest-serving federal leader of the Australian Labor Party (ALP) from 1967 to 1977, he was notable for being the he ...
, call an election for the
House of Representatives House of Representatives is the name of legislative bodies in many countries and sub-national entitles. In many countries, the House of Representatives is the lower house of a bicameral legislature, with the corresponding upper house often ca ...
. Whitlam was dismissed by the
Governor-General Governor-general (plural ''governors-general''), or governor general (plural ''governors general''), is the title of an office-holder. In the context of governors-general and former British colonies, governors-general are appointed as viceroy t ...
, Sir John Kerr, on the basis of his refusal to either resign or request a dissolution. * In December 1979 in Canada, the Progressive Conservative 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 from 1979 to 1980. Despite his relative inexperience, Clark rose quickly in federal polit ...
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 lawyer and politician who served as the 15th prime minister of Canada from 1968 to 1979 and ...
and the Liberals 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 house of the Parliament of Canada. Together with the Crown and the Senate of Canada, they comprise the bicameral legislature of Canada. The House of Commons i ...
. 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 politician, economist and barrister who served twice as Taoiseach, serving from 1981 to 1982 and 1982 to 1987. He served as Leader of Fine Gael from 1977 to 1987, an ...
's government in a budget vote in
Dáil Éireann Dáil Éireann ( , ; ) is the lower house, and principal chamber, of the Oireachtas (Irish legislature), which also includes the President of Ireland and Seanad Éireann (the upper house).Article 15.1.2º of the Constitution of Ireland reads: ...
in the
Republic of Ireland Ireland ( ga, Éire ), also known as the Republic of Ireland (), is a country in north-western Europe consisting of 26 of the 32 counties of the island of Ireland. The capital and largest city is Dublin, on the eastern side of the island. ...
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 of
Hong Kong Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
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 ...
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 , headerstyle = background-color: #efefef , label1 = Role , data1 = Executive power , label2 = Established , da ...
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; ; generically branded as ) is a pro-Catalan independence, social-democratic political party in the Spanish autonomous community of Catalonia, with a presence also in ...
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 liberal political party in Spain ...
, siding against it. A
snap election A snap election is an election that is called earlier than the one that has been scheduled. Generally, a snap election in a parliamentary system (the dissolution of parliament) is called to capitalize on an unusual electoral opportunity or to ...
was immediately called, which eventually led to a new election of 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 Westminster system