Loss of Supply occurs where a government in a parliamentary democracy 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 such way by which supply can be denied. Loss of supply is interpreted as indicating a loss of confidence in the government. A parliamentary system, or parliamentarism, is distinguished by the executive branch of government being dependent on the direct or indirect support of the parliament, often expressed through a vote of confidence. ... A motion of no confidence, also called a motion of non-confidence, a censure motion, a no-confidence motion, or simply a confidence motion, is a parliamentary motion traditionally put before a parliament by the opposition in the hope of defeating or embarrassing a government. ...

When a Loss of Supply occurs, a prime minister is generally required either by constitutional convention or by explicit [[constitutional instruction to: A prime minister is the most senior minister of a cabinet in the executive branch of government in a parliamentary system. ... A constitutional convention is an informal and uncodified procedural agreement that is followed by the institutions of a state. ...

• immediately resign (allowing the majority blocking Supply to form a government) or
• seek a parliamentary dissolution (so allowing the electorate to pass judgment on the issue).

Some constitutions however do not allow the option of dissolution, instead requiring a resignation. In politics, an electorate is the group of people entitled to vote in an election. ...

A similar deadlock can occur within presidential systems 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 some circumstances result in new elections because legislatures in such systems operate to fixed terms and so cannot be dissolved ahead of schedule, which can result in a prolonged crisis. A presidential system, also called a congressional system, is a system of government where the executive branch exists and presides (hence the term) separate from the legislature, to which it is not accountable, and which cannot in normal circumstances dismiss it. ... A budget crisis is an informal name for a situation in which the legislature and the executive in a presidential system deadlock and are unable to pass a budget. ...

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 them 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 government budget unless there is overwhelming justification and cause for such action. If a government maintains the support of the elected parliament then the budget must be approved within a nominated period or entitlement and authority for the approval of the budget is determined by a statutory majority of the parliament. Queen Elizabeth II, is the Head of State of 16 countries including: the United Kingdom, Canada, Australia, Jamaica, New Zealand and the Bahamas, as well as crown colonies and overseas territories of the United Kingdom. ...

Examples of Loss of Supply

• In 1909, the UK House of Lords voted against the "People's Budget," precipitating two general elections and the Parliament Act of 1911, which limited the power of the Lords.

• In the Australian constitutional crisis of 1975, the Australian Senate refused to vote on a bill which authorized supply for the government of Prime Minister Gough Whitlam, until Whitlam called an election for the House of Representatives. He was subsequently dismissed by the Governor-General of Australia, Sir John Kerr, having refused either to resign or request a dissolution.

• 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.¹

1909 (MCMIX) was a common year starting on Friday (see link for calendar). ... This article is about the British House of Lords. ... The Peoples Budget was proposed by the Chancellor of the Exchequer David Lloyd George in 1909, and was a key issue of contention between the Liberal government and the House of Lords, ultimately leading to two general elections in 1910 and the enactment of the Parliament Act 1911. ... The Palace of Westminster, also known as the Houses of Parliament. ... 1911 (MCMXI) was a common year starting on Sunday (click on link for calendar). ... The secretary of the Governor-General, David Smith, announcing the dissolution of Parliament on November 11th, 1975. ... Australian Senate chamber Entrance to the Senate The Senate is the upper of the two houses of the Parliament of Australia. ... Judicial High Court Lower Courts Constitution State and territory governments Executive Governors and Administrators Premiers and Chief Ministers Legislative Parliaments and Assemblies State electoral systems ACT - NSW - NT - Qld. ... Edward Gough Whitlam AC QC (born 11 July 1916), known as Gough Whitlam (, pronounced Goff), Australian politician and 21st Prime Minister of Australia. ... Australian House of Representatives chamber Entrance to the House of Representatives The Australian House of Representatives is one of the two houses (chambers) of the Parliament of Australia. ... Michael Jeffery, the current Governor-General of Australia The Governor-General of Australia is the representative in Australia of Australias head of state, Queen Elizabeth II, Queen of Australia, who lives in the United Kingdom. ... The Rt Hon. ... Dr. Garret FitzGerald (Irish name: Gearóid MacGearailt) (born February 9, 1926) was the seventh Taoiseach of the Republic of Ireland, serving two terms in office; July 1981 to February 1982, and December 1982 to March 1987. ... The Dáil Chamber Dáil Éireann[1] is the lower house of the Oireachtas (parliament) of Ireland. ...

Footnotes

¹ Article 28.2.2. of Bunreacht na hÉireann (the 1937 Irish constitution) states that The Constitution of Ireland is the founding legal document of the state known today as the Republic of Ireland. ...

The Taoiseach shall resign from office upon his ceasing to retain the support of a majority in Dáil Éireann unless on his advice the President dissolves Dáil Éireann and on the reassembly of Dáil Éireann after the dissolution the Taoiseach secures the support of a majority in Dáil Éireann.

In tandem, Article 13.2.2. states that The Taoiseach ( or [1]) — plural: Taoisigh ( or [1]) — or, more formally, An Taoiseach[2], is the head of government of the Republic of Ireland and the leader of the Irish cabinet, the rough equivalent of a prime minister under the Westminster System. ...

The President may in absolute discretion refuse to dissolve Dáil Éireann on the advice of a Taoiseach who has ceased to retain the support of a majority in Dáil Éireann.

In such an eventuality the Taoiseach, in accordance with Article 28.2.2., must resign. Loss of Supply is taken as unambiguous evidence that a Taoiseach has ceased "to retain the support of a majority in Dáil Éireann," as is defeat of a Motion of Confidence, passage of a Motion of No Confidence, defeat of a major Bill, or any measure a prime minister declares to be of such importance as to in effect amount to a confidence issue. A Motion of Confidence is a motion of support proposed by a government in a parliament or other assembly of elected representatives to give members of parliament (or other such assembly) a chance to register their confidence in a government. ... A motion of no confidence, also called a motion of non-confidence, a censure motion, a no-confidence motion, or simply a confidence motion, is a parliamentary motion traditionally put before a parliament by the opposition in the hope of defeating or embarrassing a government. ...