What is the difference between “vote-on-account” and “interim budget”?
- 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.
- 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?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Explanation
Statement 1 is incorrect and statement 2 is correct
- A Vote-on-Account includes only the expenditure component of the government’s budget, whereas an Interim Budget presents a complete set of accounts, covering both receipts and expenditure.
- A Vote-on-Account is passed to allow the government to meet its immediate expenditure needs for a short period and can be used by both a regular government and a caretaker government. An Interim Budget, on the other hand, is presented when the government seeks Parliament’s approval to meet expenses until a new government assumes office and presents the full Budget. It provides a comprehensive financial statement similar to a full Budget, including estimates of both receipts and expenditure. Since it can be presented by any government—whether incumbent, regular, or caretaker
