What happens if most MPs vote against a Finance Minister's federal budget?

Question

Say that the Budget managed to pass through opposition admendments (most occuring in March-April), however, when the final vote on the budget comes (usually in late may-June, 3 months after the delivery of the Budget speech), MPs voted to reject it, and the Nay votes are greater than yays.

So what would happen? Would the government not have a spending plan?

Answer 1

As the other posters have said this usually is a matter of confidence and the government MAY fall.  The governing party can continue to rule but usually the case is a general election.  Also depending on how indipendent the Governer General is they may call on the leader of the opposition to see if they can form a government.

These cases haven't happened in a long time but they are still within the rules the defeat of the budget does not necessarly mean the government must fall, they can negotiate with the other parties and re-submit the budget.

Answer 2

There were two occasions that spring to mind where budgets were defeated: the federal budget in late 1979, and the Manitoba provincial budget in 1988.

In both cases, it was considered a loss of confidence in the government, and both Prime Minister Joe Clark and Premier Howard Pawley called elections promptly.

If the federal budget were defeated today, the same would be expected of the current government.

Answer 3

It means they agree.

Answer 4

A vote against a budget is considered a "vote of non-confident"...basically at means the MPs are not confident in the handling of the country's finances and thus they do not feel the party should be in charge.  There is no negotiation of changes to the budget after the voet is helf and the government is defeated.

The PM would then approach the governor general and ask her/him to call an election on a date the party in charge feels is good for them.  Alternatively, the party would just resign.  

There would be no change from the previous budget bill and parliament would be out of session to lobby for votes across Canada.