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Budget crisis

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. In presidential systems, the legislature has the power to pass a budget, but the executive often has a veto in which there are insufficient votes in the legislature to override.

Unlike parliamentary systems, where a Loss of Supply would trigger resignations and new elections, a budget crisis can often lead to an extended standoff. At the federal level in the United States, a crisis can often be averted by a continuing resolution which appropriates funding at the same level as the previous budget.