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Shutdown after US govt runs out of money

Shutdown after US govt runs out of money

Sylvia Mathews BurwellWASHINGTON: The White House budget director on late Monday ordered federal agencies to begin closing down after Congress failed to pass a budget to avert a government shutdown.

“Agencies should now execute plans for an orderly shutdown due to the absence of appropriations,” said Sylvia Mathews Burwell, director Of the White House Office of Management and Budget in a memo.

The order was issued 10 minutes before the US government officially ran out of money after a day of angry brinkmanship between the Republican-controlled House of Representatives and the Senate, where Democrats have the majority.

The US Senate late Monday killed the newest House measure to delay President Barack Obama’s health care law as part of a federal funding bill, driving government to the brink of shutdown.

White House issued shutdown orders to government offices. Through this order more then 0.8 million employees would be sent home without pay. It is feared that National Parks of the country would be shut. It is also expected that employees of White House would be directed not to come on duty. It is likely that applications of visas and passport may be delayed. Defense department would continue its operations. Almost 1.4 million army personnel would continue their work but their salaries might be delayed.

According to details, differences over Obama Health Care Law continued between the House of Representatives and Senate. After it House of Representatives was not convinced at any cost to include Health Care Law in the bill. Fences could not be mended and a shutdown was observed in US after 17 years. In the result of this, the government offices have been closed. Over 0.8 million employees have become unemployed whereas President Barrack Obama has signed the bill regarding payment of salaries to armed forces personnel.

This shutdown might cause devaluation of oil in the Asian Market. The value of dollar has increased in the Asian Market as well. The government institutions in Washington and in the other states of the US would be affected because of this shutdown. The issuance of passport would be stopped.

Republican and Democrats could not agree on approval of budget which resulted in shutdown. The White House has issued orders to Government Offices to stop work after non-approval of budget by House of Representatives. The shutdown would also cause a hurdle in payment of pension but implementation on applications of visas and passports would become difficult. Department of Foreign Office and Defense institution would not affect.

The Senate rejected the bill with 54 against 46 votes in favour of bill whereas it has been suggested by Republicans for provisional fund to operate government affairs. Delay of one year in the implementation of Health Care and removal of tax imposed on medical instruments should be included in the bill; however, Senate where there is majority of members belonging to ruling Democratic Party rejected the recommendation.

It was demanded by Republicans to Senate to declare delay of one year in expenditures for approval of bill regarding necessary provisional expenditures for keep running government affairs under Obama Health Care Law. Both the political parties are leveling allegations against each other.

President Barack Obama and Democrats want Congress to pass a “clean” budget, with no political or ideology-driven providers attached, while Republicans are intent on trying to unravel so-called “Obamacare,” the president’s signature domestic legislative achievement.

If they fail to reach a deal, a shutdown will ensue, forcing hundreds of thousands of federal employees to stay home and more than a million others to work without pay, and potentially giving a hammer blow to a slowly recovering US economy.

The Senate’s vote, along strict party lines, was concluded a swift 55 minutes after the House approved its measure.

It was the latest in a series of ping pong votes that were doomed to fail in a bitterly divided Congress.

The House passed three stopgap budgets within 48 hours, each seeking to defund or delay the health care law, and the Senate rejected them all.

Senate Majority Leader Harry Reid’s frustration at the exercise showed on the floor.

“Tonight, we have more proof that House Republicans have lost their minds,” he said after the latest House vote.

“Instead of allowing all 435 members of the House of Representatives to vote on the Senate’s bill to keep the government open for business, Speaker (John) Boehner is once again pushing a government shutdown.”

With sand rapidly slipping through the hourglass, there was little sense on Capitol Hill that a last-gasp agreement was in the works.

Meanwhile, President Barack Obama in his address to the military on this occasion told members of the military he’ll work to get Congress to re-open the government as soon as possible.

Obama says troops in uniform will remain on duty as usual. He says he’s signed a law ensuring troops to get paid on time. He says ongoing operations in Afghanistan and elsewhere will continue and the U.S. will ensure those in harm’s way have what they need.

But Obama says Defense Department civilians may be furloughed. He says that compounds the damage from spending cuts that have already affected the military. Barack Obama said that the Congress was failed to perform its duties.

Hundreds of thousands of government workers will be off the job Monday, but some essential services will continue.

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