There are several different types of budget crises that a government may experience; all have as their defining characteristic the fact that a government does not have sufficient funds to continue to operate and meet its obligations. One type of crisis has its roots in politics, as competing political parties become unwilling or unable to work together to pass a budget that provides sufficient funds for the government to continue to function; the U.S. government has experienced this type of crisis several times in the past few decades. [Source: Encyclopedia of Crisis Management; Budget Crisis]
budget crisis
concepts
financial crises