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 the 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

Hint:
Article 266 of the Constitution of India provides for the approval of Parliament for funding from the Consolidated Fund of India. Also, Article 114 (3) of the Constitution stipulates that no money may be withdrawn from the Consolidated Fund except in terms of legislation.

Complete solution:
The government needs the approval of Parliament before drawing and spending money. The presentation and transfer of the budget take longer than predicted. Since Parliament may not be able to vote on the full budget before the start of the new financial year, there is a need for government funding to keep things going as usual. Voting for this account is an advance grant that allows the government to continue until the full budget, demand for grants, finance bill, and budget allocation have been passed. Voting on account only applies to the state budget expenditure. The interim budget is in some ways a full budget but was made by the government in the last year of his term, before the election. Includes expenditure and receipts. The full budget is usually passed only after lengthy negotiations. Although the (government) government requires the approval of the expenditure for the next financial year (April 1 to March 31) in the current financial year, approval from the legislature takes its time. In most cases, the negotiation and voting of grants and the passing of the Appropriation Bill go beyond the current financial year. This was the case before 2016 when the budget was presented on the last working day in February, and it was difficult to pass that same financial year.

Hence, the correct answer is option C.

Note:
Voting for an Account is a pre-grant grant to enable the government to continue until the voting requirements for the grant and the passage of the Appropriation Bill and the Finance Bill are passed. This allows the government to pay its expenses in the short term or until the full budget is finalized.