Q. 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?
Answer: B
Notes:
A vote-on-account only deals with the expenditure side of the government’s budget while an Interim Budget is a complete set of accounts, including both expenditure and receipts, akin to a full budget. For instance, P. Chidambaram had presented the last interim budget of the UPA Government on February 17, 2014, while Arun Jaitley presented the full budget – and the Modi government’s first one – five months later.
From a moral standpoint, government ought to avoid introducing radical changes in an Interim Budget since it may not have the mandate for the next five years and, if there is a regime change at the Centre, the new government will have its own policy game plan.
Source: The Hindu
