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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 the Government's budget, while an "interim budget" includes both expenditure and receipts. Which of the statements given above is/are correct?

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 the Government's budget, while an "interim budget" includes both expenditure and receipts. Which of the statements given above is/are correct? Correct Answer 2 only

The correct answer is 2 only.

Key Points

  • Interim Budget:
    • ​An interim budget is presented by the government in the Parliament if it does not have the time to present a full budget, or if the general elections are around the corner. If in case the elections are nearing, it is only correct that the incoming government frame the full budget.
    • In case, the government is not able to present the full budget before the end of the financial year, it will require parliamentary approval for incurring expenditure in the new financial year until a new budget is passed.
    • Until the Parliament discusses the budget and passes it (for the whole year), through the interim budget, the government passes a vote-on-account which will allow the government to meet its expenses of administration.
  • vote-on-account:
    • ​It allows the government to meet its expenses in the short period leading up to the elections.
    • The vote-on-account is passed as a convention without discussion, as opposed to a full budget where the budget is passed only after discussions are held.
    • It is like a grant-in-advance to the government to function properly until the voting on the demands for grants, as well as the passing of the Finance Bill and the Appropriation Bill.
  • Difference between Interim budget and Vote-on-account:
    • A vote-on-account contains only the expenditure of the government's budget while an Interim Budget is a complete set of accounts i.e. it includes both expenditure and receipts. Hence, statement 2 is correct.
    • Vote-on-account is passed every year and is used by both the regular and caretaker government. 
    • An interim budget essentially means the government seeks the approval of Parliament for meeting expenditure until a new government takes over and presents a full Budget.
    • An Interim Budget gives a complete financial statement that is very similar to a full Budget.
    • Interim Budgets also can be presented by all governments whether incumbent or regular or caretaker. Hence, statement 1 is incorrect.

Related Questions

Directions : In each of the following questions a statement is given, followed by three conclusions. Give answer :

Statement : The Central Government has directed the State Governments to reduce government expenditure in view of the serious resource crunch and it may not be able to sanction any additional grant to the states for the next six months.

Assumptions :
I. The State Governments are totally dependent on Central Government for its expenditures.
II. The Central Government has reviewed the expenditure account of the State Government.
III. The State Governments will abide by the directive.
Given bar graph shows, total expenditure and the gross receipts of a company (in Rs. crores). Study the graph and answer the question that follows.   If profit = gross receipts - total expenditure, then in 1997 - 98, what percentage of gross receipts is the profit made? (Correct to one decimal place)
Which of the following is/are correctly matched? Revenue Deficit = Revenue expenditure – Revenue receipts Fiscal Deficit = Total expenditure – (Revenue receipts + Non-debt creating capital receipts) 
The following bar graph shows receipts and expenditure of a business firm over 5 years. Gain = Receipts - Expenditure. What is the increase percentage in receipts from 2017 to 2018?
Which of the following statements about Regular Expression is/are incorrect? A. The union of two regular expressions is also a regular expression B. The concatenation of two regular expressions is also a regular expression C. The iteration of a regular expression is also a regular expression
The pie chart given below shows the expenditure of a family on six different articles A, B, C, D, E and F in a month. Total expenditure on all these six articles is Rs. 42000. Expenditure on a particular article is shown as a percent of total expenditure on all these six articles. Which of the following statement(s) is/are correct? I. Expenditure on article C is Rs. 5560 more than the expenditure on article A. Il. Ratio of expenditure on article A to the expenditure on article D is 5: 4 respectively.
Consider the following statements: 1. The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments. 2. The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments. 3. As per the Constitution of India, it is mandatory for a State to take the Central Government's consent for raising any loan if the former owes any outstanding liabilities to the latter. Which of the statements given above is/are correct?
Directions: Seven different boxes A, B, C, D, E, F and G of different colours viz., Orange, Pink, Purple, Yellow, Blue, Red and Green are arranged one above the other. The box at the bottom of arrangement is numbered 1, the above box is numbered 2 and so on. B is immediately above E. More than two boxes are above the Orange box. The Yellow box is immediately below A. Only one box is between the Orange box and F. G is immediately above the Red box. Only one box is between B and the Pink box. Only two boxes are between the Pink and the Green box. Only two boxes are between the Yellow box and the Orange box. The Purple box is neither at the top nor at the bottom of the arrangement.B is above Pink box. C is immediately above F. Neither C nor G is a Yellow box. G is not a Orange box. Question: Which combination represents the position of C and its colour?
Which of the following are examples of cash flow from operating activities as per AS-7?
1. Cash receipts from the sale of goods and the rendering of services.
2. Cash receipts from disposal of intangible assets.
3. Cash receipts from royalties, fees, commissions and other revenue.
4. Cash payments to suppliers for goods and services.
5. Cash proceeds from issuing shares or other similar instruments.
6. Cash payments to and on behalf of employees.
Select the correct answer:
Consider the following statements in the context of Indian Public Finance: 1. The fiscal deficit is the excess of total budget expenditure over total budget receipts including borrowings during a fiscal year 2. The upward trend in the ratio of Fiscal deficit to GDP has an adverse effect on private investment. Which of the statements given above is/are correct?