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?
Answer & explanation
Answer: (b) 2 only
Only statement 2 is correct. A vote-on-account is a grant in advance by Parliament for expenditure alone, under Article 116. An interim budget is a complete budget statement covering both receipts and expenditure, presented when the full budget cannot be passed before the financial year begins. Neither device is reserved for a 'regular' or a 'caretaker' government, so statement 1 is wrong.
- ✗ 1. Neither device is tied to a particular kind of government; the sitting Union government uses both. In February 2024, for example, the Finance Minister presented an interim budget and, in the same speech, sought a vote on account for part of the financial year.
- ✓ 2. A vote-on-account is only a grant in advance to meet expenditure until the General Appropriation Bill is passed. An interim budget is a complete budget statement. The 2024-25 interim budget gave estimates of both receipts (including tax receipts) and expenditure, while the vote on account was sought separately for expenditure.
Remember · Vote-on-account (Article 116) = advance grant for expenditure only. Interim budget = full statement of receipts and expenditure, presented by the sitting government, usually in an election year.
Sources
- Rajya Sabha at Work, Ch. 24: Procedure in Financial Matters ↗ “The Constitution provides for vote on account, i.e., for grants in advance to be made by Parliament pending the passing of General Appropriation Bill.”
- Interim Budget 2024-25 Speech of the Finance Minister, indiabudget.gov.in ↗ “I will be seeking ‘vote on account’ approval of the Parliament through the Appropriation Bill for a part of the financial year 2024-25.”
Question: UPSC Civil Services (Preliminary) 2011, General Studies Paper I. Explanation: Minimalist IAS, checked 25 Oct 2026 (how we verify). ·
