STORMONT parties sought to pin the blame on one another after James Brokenshire moved to pass a regional budget.
The secretary of state first signalled his intention to introduce legislation for a 2017/18 budget in July.
When the latest phase of talks broke up last month without agreement, he said Northern Ireland would run out of money if he did not put funds in place.
Mr Brokenshire insisted it does not mean the imposition of direct rule but is only "greater intervention" from London.
DUP deputy leader Nigel Dodds welcomed the move in the absence of a devolution deal and claimed the failure to restore power-sharing rests with Sinn Féin.
He also said that if an executive is not formed direct rule ministers of "some ilk will have to be appointed".
However, Sinn Féin northern leader Michelle O'Neill blamed the DUP's "opposition to a rights-based society" for the inability to reach agreement.
"While some progress was made, the denial of rights would not be tolerated in Dublin and London and should not be tolerated here – we met the DUP this morning and told them this," the Mid-Ulster MLA said.
Ms O'Neill also claimed the British government was "complicit" in preventing a breakthrough by backing the DUP’s "refusal to honour the commitments previously made".
“Theresa May has prioritised her own electoral survival via the Tory/DUP pact over the interest of all of the people in the north."
SDLP leader Colum Eastwood blamed Sinn Féin for "failing to deliver a deal that delivers for nationalism".
He claimed Gerry Adams's party had "gifted Arlene Foster and the DUP complete control".
"Sinn Féin should be ashamed of themselves today – the setting of a budget in London that should have been made in Belfast turns back decades of progress to have power on Irish soil."
Ulster Unionist Steve Aiken said the budget did not signal a return to direct rule but was a "sign of the failure of the last executive".
"This is a mess that has been exacerbated firstly by the failure of a Sinn Féin finance minister to deliver a budget last year and secondly by the lack of planning in place for the next financial year when we will run into bigger problems," he said.
"Whether it is our own ministers, or those appointed by the prime minister, getting to grips with our budgetary crisis, difficult decisions will need to be made and planning for those should have already started."
Alliance deputy leader Stephen Farry said the talks process needed to become "more inclusive".
"An independent mediator would also give the talks a boost which the process has been missing to date," he said.
"They will be able to play a constructive role to try and get all parties to understand why devolution collapsed, why the impasse remains and how we can find a way forward."
