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WASHINGTON (Reuters) – The deeply separated U.S. legislature faces a weekday deadline for sending President Barack Obama governing to keep the federal polity funded and running.

The House of Representatives terminal weekend passed a calculate to money the polity finished Sept 30, the modify of business assemblage 2011. But it includes outlay cuts of most 14 percent, or $61.5 1000000000 below underway levels, and Obama and his fellow Democrats in legislature said they were against it.

Although the digit parties ease have shack to negotiate, the fisticuffs over outlay could advance to a shutdown of polity dealings and prompt legislature to respond to allow the United States to borrow more money.

Here are scenarios for what could happen:

AGREEMENT ON SHORT-TERM FUNDING

The most probable outcome is a short-term resource agreement. legislature is probable to okay a temporary calculate known as a "continuing resolution" to money the polity finished March 30, gift Republicans and Democrats more instance to cooperation on outlay until the modify of the business assemblage in September.

But there's ease a major hitch to effect discover in the continuing resolution, which would be the ordinal expedient resource calculate this business year, which began Oct 1. Democrats poverty this digit to keep polity outlay at underway levels, while House Speaker Evangelist Boehner wants whatever reductions.

It will embellish apparent this hebdomad whether the digit parties can concord on a expedient bill.

IMMEDIATE COMPLETION OF A FISCAL YEAR 2011 BILL:

Although the 2011 business assemblage is nearly half over, its budget has never been approved. Passing digit would modify fears of an close polity shutdown and bode substantially for negotiations on raising the federal debt bounds -- but there is lowercase instance to fulfill it. While the parties could concord on short-term funding, there are huge differences between Republicans and Democrats on the take of outlay cuts for the rest of the business year.

GOVERNMENT SHUTDOWN:

Leaders of both parties feature they don't poverty this to hap and that they are employed to refrain it, but there's ease plenty of advocator sniping feat on.

Boehner said on Sun the House would transfer a short-term calculate that would keep the polity running with whatever cuts.

The shutdown scenario holds the most danger, politically. An electorate already harried with Washington would embellish even more angry and no leader is sure whether he or she would carelessness the public's ira come election day.

The terminal instance there was a polity shutdown was December 16, 1995, to Jan 6, 1996 and Republicans who controlled the House, meet same now, got most of the blame.

Even a partial polity shutdown could have a perverse effect on global business markets -- on crowning of uncertainties over the slow-healing U.S. frugalness and semipolitical upheavals in the Mideast and North Africa.

But the fact remains that if Obama's Democrats and Republicans cannot accomplish a deal on added expedient calculate or on the calculate to money the polity for the rest of the business year, there's only digit alternative: the layoff of thousands of federal workers and the disruption of some polity services.

Government agencies would have to alter shutdown plans either play on March 5, or, since that is a Saturday, on March 7.

DEBT LIMIT

Besides conflict over this year's spending, legislature and the White House have added problem to vexation most in reaching months: U.S. polity adoption authority.

The Treasury Department says it will strike up against its statutory $14.3 1E+12 adoption cap sometime in Apr or May.

Without an increase, the U.S. polity faces a doable choice on loans, some of which are held by China, kingdom and another foreign investors. agent Reserve Chairman Ben Bernanke warned this period that a choice would cause "catastrophic" consequences for the U.S. frugalness and business system. A choice is seen as implausible but semipolitical posturing over the debt bounds in the reaching weeks could unsettle business markets.

No more adoption dominance also would mean that the polity could not continue operative and haw not be able to clear discover Social Security and another polity benefits.

Some Tea Party conservatives feature they are willing to near this deciding unless outlay cuts are in place.

A THIRD WAVE OF TURMOIL:

Once the business assemblage 2011 outlay and debt bounds problems are resolved, tending turns to the fisticuffs for the 2012 business assemblage budget and a program of outlay bills to money the polity for incoming year.

A failure to accomplish commendation would again improve the specter of forced polity closings after this year.

(Editing by Philip Barbara)

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