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 expen

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Q: 74 (IAS/2011)
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?

question_subject: 

Polity

question_exam: 

IAS

stats: 

0,94,157,35,94,100,22

keywords: 

{'interim budget': [0, 0, 0, 1], 'expenditure': [2, 0, 2, 4], 'caretaker government': [0, 0, 0, 1], 'budget': [3, 1, 4, 10], 'account': [2, 0, 3, 3], 'regular government': [0, 0, 0, 1]}

A "vote on account" is a provision made by the government in an election year to secure funds for the functioning of the government for a limited period, usually two to three months until the full budget is presented and passed by the new government. It deals only with the expenditure part of the budget and not the tax proposals or new schemes.

An "interim budget," on the other hand, is presented by the outgoing government in an election year just before the end of its term, and it includes both expenditure and receipts. It is essentially a budget for the entire year, and it is presented when the new government is not in a position to present a full budget due to the lack of time or for other reasons.

Therefore, statement 1 is incorrect as both "vote-on-account" and "interim budget" can be presented by the regular government as well as the caretaker government. Statement 2 is correct as it correctly describes the difference between the two.