Taoiseach Leo Varadkar tendered his resignation to President Michael D Higgins last night.
He will however continue in the role in a caretaker capacity.
Mr Varadkar said that no major policy decisions and financial allocations would be made by the Government from this point on.
Leo Varadkar said the government would continue to serve until a new administration is formed.
He once again insisted that the onus was on others to put a new government together.
However, he said his party would stand by the State and talk to other parties if there was no other alternative.
The Fianna Fáil Leader Micheál Martin said a new government must be formed that would prioritise state intervention to improve key services.
Speaking in the Dáil Mr Martin was again highly critical of Sinn Féin.
Mary Lou McDonald responded by saying that Fianna Fáil and Fine Gael had run the show for the last century and were not willing to let go.
The Dáil made four attempts to elect a Taoiseach last night with the Sinn Fein leader receiving most votes.
However, the 45 votes secured by Mary Lou McDonald was well short of the required majority to form a government.
The Dáil will meet again in just under a fortnight.
A new government will most likely to take a little longer to emerge though.