Difference Between Vote On Account and Interim Budget

By : Neha Dhyani

Updated : Mar 27, 2022, 16:06

Both Vote On Account and Interim Budget are financial concepts asked in many competitive exams. Hence, the Differences Between Vote On Account and Interim Budget is explained below.

Many people use the term interim budget and vote on account interchangeably. However, they have significant differences. An interim budget is; a budget presented by the government in the parliament going through a transition period, while a vote on account is passed through the interim budget to meet small expenditures.

Vote on account

According to Article 116, a vote on account is a grant for the central government to meet short-term expenditure needs. This amount is from the consolidated fund of India. The consolidated fund of India is where most of the revenue is retained. This grant generally lasts for a few months until the new financial year kicks in. Some key features of the vote on account are listed below.

  • The vote on account is a formality and is passed without any discussion.
  • A vote on account is a grant in advance for the government to function properly during a transition period or the final leg before elections.
  • It allows the government to meet its required expenses.

Interim budget

An interim budget comes into play when the existing government cannot present an entire union budget. Thus, the ruling government presents the interim budget. An interim budget is usually set into motion during an election year or a transition period. Some key features of the interim budget are listed below.

  • The interim budget is a complete set of accounts that include; both receipts and expenditures.
  • The finance minister presents the interim budget during a joint sitting of Rajya Sabha and Lok Sabha in the parliament.
  • Until the government passes the interim budget, the government passes a vote on account to allow them to meet its expenses.
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Differences between interim budget and vote on account

Vote on account

Interim budge

An interim budget is set in motion when the incumbent government cannot present a full union budget, usually during election time.

The vote on account, on the other hand, is passed every year.

A vote on account is usually valid for 2 months.

An interim budget is valid for an entire year.

A vote on account lists only the expenditure.

The interim budget gives a complete financial statement and a complete set of accounts consisting of both; expenditure and receipts.

A vote on account is passed without any discussion.

The interim budget is discussed with Rajya Sabha and Lok Sabha

A Vote on the account cannot make changes to the tax regime

The interim budget has the power to make changes in taxes.

The interim budget and the vote on account are crucial parts of our constitution; both these acts provide an essential function of ensuring that the government has adequate funding to perform its regular activities.

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FAQs on Difference Between Vote On Account and Interim Budget

Q.1. How long is a vote on account valid?

A vote on account is usually valid for two months.

Q.2. What are the consolidated funds of India?

The consolidated fund of India is the total revenue the government receives, excluding exceptional items.

Q.3. Is an interim budget passed every year?

No. The interim budget is usually presented by the ruling government every five years.

Q.4. What is the difference between Vote On Account and Interim Budget?

Major Difference Between Vote On Account and Interim Budget, An interim budget is set in motion when the incumbent government cannot present a full union budget, usually during election time and the vote on account, on the other hand, is passed every year.