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In a parliamentary democracy confidence and supply are required for a government to hold power. A confidence and supply agreement is an agreement that a minor party or independent member of parliament will support the government in motions of confidence and appropriation (supply) votes.

[edit] Confidence

In most parliamentary democracies, members of a parliament can propose a Motion of Confidence or Motion of No Confidence in the government or executive. The results of such motions show how much support the government currently has in parliament. Should a motion of confidence fail, or a motion of no confidence pass, the government will usually either resign and allow other politicians to form a new government, or call an election.

[edit] Supply

Most democracies require an Appropriation bill or something similar to be passed by parliament in order for a government to receive money to enact its policies. If an appropriation bill fails, the government loses control of the money supply, and is therefore virtually powerless. The failure of a supply bill thus has the same effect as the failure of a confidence motion. In early modern England, the withholding of funds was one of parliament's few ways of controlling the monarch.