UPSC Previous Year Questions - Polity
Here Past 20 Years Questions and Answers have been Covered that Appeared in the UPSC Exam
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Frequently Asked Questions in UPSC :
Q) What is the difference between “vote-on-account” and “interim budget”? (UPSC - 2011)
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 expenditures and receipts.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Show/Hide Answer
Ans: (b) 2 only
Show/Hide Explanation
Interim budget :
(1) An interim budget is presented by the government when it does not have time to present a full budget.
(2) Mostly, it is because the general election is around the corner.
(3) Thus, as per tradition, the government of the day leaves the task of framing the full budget to the incoming dispensation after the election results.
(4) So when the government is unable to present a full budget before the end of the financial year, it needs parliamentary approval to incur expenses from the time the new financial year, kicks off until a new budget is passed. Hence the word "interim".
vote-on-account :
(1) Through the interim budget, Parliament passes a vote-on-account which basically gives the government temporary permission to meet the expenses of the administration until the elections. The vote-on-account is normally valid for two months but can be extended.
Difference Between Interim budget and vote-on-account :
(1) An interim budget is technically just like the full budget, but only for a temporary period. Like the Union budget, it contains a complete set of accounts, including expenditures and receipts. And like the full budget, the estimates are presented for the whole year.
(2) However, in the election year, the government usually avoids announcing any major tax changes or schemes in the interim budget even though it is not constitutionally prohibited from doing so.
(3) A vote-on-account, on the other hand, deals with only the expenditure side of things. It is passed in Parliament without a formal discussion.
(4) An interim budget has to be discussed in the Lok Sabha and then passed. On the other hand, A Vote-On-Account can be passed by the Lok Sabha without discussion through the interim budget.
