In a parliamentary democracy based on the Westminster system, 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 by voting in favour or abstaining.
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.
Supply
Most democracies require an appropriation bill or something similar to be passed by parliament in order for a government to receive money...
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