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?

The distinction between a 'vote on account' and an 'interim budget' lies in their scope and purpose. A 'vote on account' is a constitutional provision that allows the Lok Sabha to grant funds in advance to cover estimated expenditure for a part of the financial year until the main budget is passed [1]. It deals exclusively with the expenditure side of the government's budget [1]. In contrast, an 'interim budget' is a complete financial statement presented during an election year, containing estimates for both receipts (revenue) and expenditure [2]. While statement 1 suggests that only caretaker governments use interim budgets, in practice, the outgoing ruling government presents it as an unwritten convention before elections [3]. Therefore, statement 1 is incorrect because regular governments use both provisions, while statement 2 is correct as it accurately describes the difference in their financial scope [2].

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.1 Introduction > p. 147
2. [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.1 Introduction > p. 146
3. [3] Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 23: Parliament > Stages in Enactment > p. 255