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Explained: What is the US Government Shutdown? Can a 'shutdown' situation hit India anytime soon?

An emergency bill was passed on Saturday night to grant funding to the federal departments of the United States government, narrowly avoiding a government shutdown.

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The Joe Biden-run United States government narrowly avoided a major crisis leading up to the US government shutdown by passing a bill at the 11th hour on Saturday, granting emergency funding to the federal services of the country.

The bill contained no mention of the continued aid to war-torn Ukraine, hinting that the monetary help would be temporarily stopped. The passing of the bill means that the US federal services can now run unhindered for the next 45 days.

While the Republican senators were against the emergency funding bill, urging the Democrats to look for a long-term solution, the jobs of tens of thousands of federal government employees in the US currently remain safe, but only for 45 days.

What is a government shutdown?

The US government would have headed for a complete shutdown if Congress hadn’t approved the funding of federal departments and agencies by October 1. Through the passage of the emergency bill in by the US Congress, the shutdown was averted for 45 days.

If the US government faces a shutdown, almost all government operations will come to a halt except for the emergency services. Those working in federal agencies will be sent on furlough without pay, leading to a major dent in the US economy.

The outcome ends, for now, the threat of a shutdown, but the reprieve may be short-lived. Congress will again need to fund the government in the coming weeks risking a crisis as views are hardening, particularly among the right-flank lawmakers whose demands were ultimately swept aside this time in favor of a more bipartisan approach.

Can a government shutdown situation happen in India?

While any country’s government can run out of money due to any hard-hitting financial crisis, a situation of ‘government shutdown’ is unlikely in India since funds are allotted to all the government departments at the start of the financial year, during the announcement of the Union Budget.

A government shutdown is not possible in India as the country follows a Parliamentary system, as opposed to the US Presidential system of governance, which is separate from the Congress (legislature).

The Indian government functions on the decisions signed and passed by the Parliament, while in the US, bills are signed and approved by the President. The Indian Parliament only functions according to the President if the President’s Rule is imposed, which needs to be passed by both houses of the Parliament within two months of its issue. 

READ | DNA Explainer: What is 'One Force, One District' policy that may be adopted in Manipur amid violence?

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