Ravish at 13:28, 7 September 2022

2022-09-07T13:28:40Z

New page

{{short description|Failure of budget legislation in a parliamentary system}}
{{About|budget legislation failure in a parliamentary-style government|the corresponding situation in a presidential-style government|Budget crisis}}
{{ref-improve|date = December 2017}}

'''Loss of supply''' occurs where a government in a [[parliamentary democracy]] 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 [[motion of no confidence|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".<ref>Browning A. R. (ed) ''House of Representatives Practice'' (Melbourne 1989) page 72.</ref>

When a loss of supply occurs, a [[prime minister]] is generally required either by [[Constitutional convention (political custom)|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]], where it is also known as a [[budget crisis]]. 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]] 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 [[United Kingdom|UK]] [[House of Lords]] voted against the "[[People's Budget]]", precipitating two general elections and the [[Parliament Act 1911]], which limited the power of the Lords.
* In the [[1975 Australian constitutional crisis]], the elected [[Australian Senate|Senate]] delayed voting on a bill to authorize supply for the government demanding that the [[Prime Minister of Australia|Prime Minister]], [[Gough Whitlam]], call an election for the [[Australian House of Representatives|House of Representatives]]. Whitlam was dismissed by the [[Governor-General of Australia|Governor-General]], Sir [[John Kerr (Governor-General)|John Kerr]], on the basis of his refusal to either resign or request a dissolution.<ref>Jenny Hocking ''The Dismissal Dossier'' Melbourne University Press. 2015</ref>
* In December 1979 in Canada, the [[Progressive Conservative Party of Canada|Progressive Conservative]] government of [[Joe Clark]] was defeated on a budget vote. Clark called the [[1980 Canadian federal election]] as a result. [[Pierre Trudeau]] and the [[Liberal Party of Canada|Liberals]] won a majority of seats in the [[House of Commons of Canada]]. Clark resigned as prime minister and was replaced by Trudeau.
* In September 1980, the [[Chamber of Deputies (Italy)|Italian Chamber of Deputies]] rejected a budget bill proposed by the [[second Cossiga government]] in a 298-297 vote taken by [[voting methods in deliberative assemblies#Balloting|secret ballot]]. [[Francesco Cossiga]] consequently resigned as prime minister and [[Forlani government|was replaced]] by [[Arnaldo Forlani]].<ref>{{Cite web|url=http://legislature.camera.it/_dati/leg08/lavori/stenografici/sed0213/sed0213.pdf|title=Resoconto seduta 27 settembre 1980|access-date=6 February 2023}}</ref>
* The defeat of [[Garret FitzGerald]]'s government in a budget vote in [[Dáil Éireann]] in the [[Republic of Ireland]] in 1982. FitzGerald immediately sought and was granted a Dáil dissolution.<ref>Dáil debates [http://historical-debates.oireachtas.ie/D/0332/D.0332.198201270052.html Vol.332 cc.380–414] {{webarchive|url=https://web.archive.org/web/20120922041524/http://historical-debates.oireachtas.ie/D/0332/D.0332.198201270052.html }} [http://historical-debates.oireachtas.ie/D/0333/D.0333.198203090002.html Vol.333 cc.3–4] {{webarchive|url=https://web.archive.org/web/20110607125057/http://historical-debates.oireachtas.ie/D/0333/D.0333.198203090002.html }}</ref>
*On 9 March 2011, the [[Legislative Council (Hong Kong)|Legislative Council]] of [[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 of the assembly|division]] 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 [[First government of Pedro Sánchez|Spanish Government]] lost a vote on a budget bill, 191-158, thanks to two allies of the Government, [[Republican Left of Catalonia]] and the [[Catalan European Democratic Party]], siding against it. A [[April 2019 Spanish general election|snap election]] 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}}

[[Category:Fiscal policy]]
[[Category:Political terminology]]
[[Category:Westminster system]]

Loss of supply - Revision history

Ravish at 13:28, 7 September 2022