Vote on Account, Interim Budget & Full Budget
Vote on Account is a Grant in advance to enable Govt. to carry on until the voting of Demands and Grants & passing of the Appropriations Bill and Finance Bill. As a convention, a vote on account is treated as a formal matter and passed by Lok Sabha without discussion. In other words, this enables the Govt. to fund its expenses for a short period of time or until a full Budget is passed.
Article 266 of Constitution of India mandates that parliamentary approval is required to draw money from the consolidated fund of India. Besides, Article 114 (3) of constitution stipulates that no amount can be drawn from the consolidated fund without the enactment of law (Appropriation Bill).y
During Election year or when it is anticipated that main Demands & Appropriation Bill will take longer time than two months, the Vote on Account may be for a period exceeding two months.
The difference between Budget and Vote on Account is that -
1) Full Budget deals with both Expenditure and Revenue side but Vote on Account deals only with the expenditure side of Govt.'s Budget.
2) Vote on account is normally valid for two months but full Budget is valid for twelve months ((F.Y.)
3) As a convention, a vote on account is treated as a formal matter and passed by Lok Sabha without discussion. But passing the Budget happens only after discussions and voting on demand for Grants.
During an Election year ruling Government generally opts for for a Vote on Account or Interim Budget instead of a full Budget. While technically, it is not mandatory for the Government to present a Vote on Account but it would be inappropriate to impose policies that may or may not be acceptable to the incoming Government taking over in the same year.
INTERIM BUDGET -
This budget in all practical sense is a full Budget, but made by the Government of its term- i.e. just before elections. An Interim Budget is a complete set of accounts, including expenditure and receipts but it may not contain big policy proposals.
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Article 266 of Constitution of India mandates that parliamentary approval is required to draw money from the consolidated fund of India. Besides, Article 114 (3) of constitution stipulates that no amount can be drawn from the consolidated fund without the enactment of law (Appropriation Bill).y
During Election year or when it is anticipated that main Demands & Appropriation Bill will take longer time than two months, the Vote on Account may be for a period exceeding two months.
The difference between Budget and Vote on Account is that -
1) Full Budget deals with both Expenditure and Revenue side but Vote on Account deals only with the expenditure side of Govt.'s Budget.
2) Vote on account is normally valid for two months but full Budget is valid for twelve months ((F.Y.)
3) As a convention, a vote on account is treated as a formal matter and passed by Lok Sabha without discussion. But passing the Budget happens only after discussions and voting on demand for Grants.
During an Election year ruling Government generally opts for for a Vote on Account or Interim Budget instead of a full Budget. While technically, it is not mandatory for the Government to present a Vote on Account but it would be inappropriate to impose policies that may or may not be acceptable to the incoming Government taking over in the same year.
INTERIM BUDGET -
This budget in all practical sense is a full Budget, but made by the Government of its term- i.e. just before elections. An Interim Budget is a complete set of accounts, including expenditure and receipts but it may not contain big policy proposals.
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