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?

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YESPYQ · Accepted Answer

Correct answer: 2 only. Statement 1 is incorrect: During the time of approaching elections, it is not practical to present a full budget, therefore the government presents an interim budget. Interim Budget can be presented by all governments whether incumbent or regular or caretaker. Statement 2 is correct: The Appropriation Bill becomes an Act after Presidential assent, authorizing withdrawals from the Consolidated Fund of India. Since its enactment takes time, the government cannot withdraw funds beyond March 31. To address this, the Lok Sabha grants a ‘Vote on Account’, allowing advance funds for essential expenses, usually for two months, covering one-sixth of the total estimated expenditure, until the Appropriation Bill is passed. A vote-on-account contains only the expenditure of the government’s budget while an Interim Budget is a complete set of accounts i.e. it includes both expenditure and receipts. 190

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