What happens if Budget 2021 fails to pass Parliament?

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Failure to Pass Budget 2021 Would Render Government Incapable of Operation and Imply Loss of Confidence

If the government fails to secure parliamentary approval for the Supply Bill (Budget 2021), it would be unable to withdraw funds from the Consolidated Fund for expenditure in 2021, as parliamentary authorisation is a prerequisite for such withdrawals. This scenario also signifies a loss of confidence in the prime minister's leadership, which, by convention in a Westminster system, necessitates either the prime minister's resignation or the calling of a general election. A government incapable of disbursing funds would be unable to effectively manage daily operations.
Inability to Access Consolidated Fund

The failure to pass the Supply Bill means the government cannot legally access the Consolidated Fund for its 2021 expenditures. Article 104 of the Federal Constitution mandates that Parliament must authorise any withdrawal from this fund, with very limited exceptions. Without this authorisation, the government would be paralysed in its ability to fund essential services and operations.
Implication of No-Confidence Vote

A defeat on the Supply Bill is conventionally interpreted as a direct vote of no confidence in the prime minister. This implies that a majority of Members of Parliament do not have faith in the prime minister's stewardship of public funds. Such a loss of confidence, according to constitutional convention, typically leads to the prime minister either tendering their resignation or advising the Yang di-Pertuan Agong to dissolve Parliament for a new election.
Governance Paralysis Due to Lack of Funds

Beyond the political implications, a government that cannot spend money is effectively unable to govern. The day-to-day running of government ministries and agencies relies on expenditures drawn from the Consolidated Fund. Without access to these funds, essential public services and administrative functions would cease to operate, leading to a complete breakdown in governance.
Potential Prime Ministerial Options

In the event of a failed budget vote, the prime minister has several conventional avenues. These include resigning from office, which would allow the Yang di-Pertuan Agong to appoint another Member of Parliament as prime minister to form a new government and present a revised budget. Alternatively, the prime minister could request the Yang di-Pertuan Agong to dissolve Parliament, leading to a general election, though the King retains discretionary power to reject such a request. It is also legally possible, though politically unlikely, for the prime minister to attempt to table a new budget and repeat the parliamentary process.

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What happens if Budget 2021 fails to pass Parliament?

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