UPSC Prelims 2011 · Question 84 of 100

UPSC Prelims 2011 question on Vote on Account Interim Budget

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?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2
Show answer

Answer: B. 2 only

Verdict

Correct Answer: 2 only

Only statement 2 is correct because vote-on-account is limited to expenditure, while interim budget covers both receipts and expenditure.

Analysis

Vote-on-account and interim budget are both used when the government needs parliamentary approval for spending during a transition period. However, they differ in scope.

Statement by statement

1. Vote-on-account is used by regular government, while interim budget is used by caretaker government — Incorrect

This is not a constitutional rule.

Both can be presented by an incumbent government. By convention, an outgoing government before elections usually presents an interim budget instead of a full budget.

2. Vote-on-account deals only with expenditure, while interim budget includes both expenditure and receipts — Correct

Vote-on-account only seeks approval to withdraw money from the Consolidated Fund of India for essential expenditure for a short period.

An interim budget is broader and includes both expenditure and receipts, like a temporary version of the full budget.

Extra UPSC info

* Vote-on-account is provided under Article 116 of the Constitution.

* Interim budget is based on convention, not a specific constitutional article.

* Vote-on-account usually covers expenditure for about two months.

* Vote-on-account cannot change tax rates.

* Interim budget can technically propose tax changes, though major changes are usually avoided before elections.

* Vote-on-account is generally passed without detailed discussion.

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