Question

What is the difference between "vote-on-account" and "interim budget"?
1. The provision of a "vote-on-account" is used by a regular Government, while an "interim budget" is a provision used by a caretaker Government.
2. A "vote-on-account" only deals with the expenditure in Government's budget, while an "interim budget" includes both expenditure and receipts.
Which of the statements given above is/are correct?

• A. 1 only
• B. 2 only
• C. Both 1 and 2
• D. Neither 1 nor 2

Answer 1

The correct option is B 2 only

Government (executive) requires the approval of the Parliament before drawing and expending funds. The presentation and passing of the budget take time more than predicted. Since Parliament is not able to vote the full budget before the commencement of the new financial year, there is a requirement of funds by the government to keep things running as usual.

Vote on the account is a grant in advance which enables the government to carry on until the full budget, demand of grants, finance bill, and appropriation bill is passed.

The vote on account only deals with the expenditure side of the government's budget.

An interim budget in a way is a full budget but it is made by the government in last year of its term i.e., before the election. It includes both expenditure and receipts.