In Brief
What is a shutdown?
What will be the impact of the shutdown on India?
What is the impact on citizens?
The American federal government shutdown has begun. As a result, thousands of government employees are facing unpaid leave. The shutdown poses a risk of halting non-essential activities and services of the American government.
What is a shutdown?
Every year, it is necessary to approve a budget to run the American government. If, for some reason, the Senate and House do not approve it and the funding bill is not passed, government agencies and employees do not get paid. Consequently, 'non-essential' services and offices are closed. This is called a shutdown.
This shutdown in America has adversely affected not only Americans but also Indians, especially those planning to travel to America or are in the process of obtaining a visa. The American embassy has announced that due to the shutdown, their social media account on X will not be "regularly updated." Moreover, there is a possibility that visa appointments and processes at American embassies in India may be affected.
Economic Impact
The government shutdown could also affect America's economic data. Employees will only receive their pay after the shutdown ends, while some federal agencies will be delayed in starting work at full capacity.
What is the impact on citizens?
Due to the government shutdown, services like passport processing, management of national parks, and loan approvals stop or are delayed. Important programs like Social Security continue but are delayed. The economy suffers as contractors and small businesses are hit the hardest. Additionally, weather disaster preparedness and environmental programs also come to a halt.