Why do government shutdowns happen?

Under the Antideficiency Act (initially passed in 1884 and amended in 1950), federal agencies cannot spend or obligate any money without an appropriation (or other approval)from Congress. When Congress fails to enact the 12 annual appropriation bills, federal agencies must cease all non-essential functions until Congress acts. This is known as a government shutdown. If Congress enacts some but not all of the 12 appropriations bills, only agencies without appropriations have to shut down; this is known as apartial shutdown.

Apart from the political conflicts causing the delay in theapproval of appropriation bills, I will focus on the budgetary processes in this episode. Thus, I have gathered a range of features, trying to establish similarities with how SMEs may suffer from budget inefficiencies.

1.    Impacts of a mismanaged, outdated budget system

2.    A modern alternative taking help from AI