Difference Between Vote On Account and Interim Budget

By K Balaji|Updated : November 29th, 2022

The major difference between the Vote on account and Interim budget is that vote on the account can not impact the tax regime, whereas the Interim budget can impact or change it. 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.

Differences between Interim Budget and Vote on Account PDF

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. Here, we will explore the important differences between Interim Budget and Vote on Account and briefly explore each.

Differences between Interim Budget and Vote on Account

Sometimes interim budget and vote on account are used to represent the same things, but there are various differences between Interim Budget and Vote on Account. 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.

Interim Budget vs Vote on Account

Interim Budget and Vote on Account

Interim Budget

Vote on Account

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.

An interim budget is valid for an entire year.

A vote on account is usually valid for 2 months.

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

A vote on account lists only the expenditure.

The interim budget is discussed with Rajya Sabha and Lok Sabha

A vote on account is passed without any discussion.

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

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

Interim Budget and Vote on Account

Interim budget and vote on account are used to take account of the expenditure by the ruling government. The consolidated fund of India is where most of the revenue is retained. This grant generally lasts for 2 months until the new financial year begins. An interim budget is usually set into motion during an election year or a transition period.

What is Vote on Account?

According to Article 116, a vote on account is a grant provided to the ruling government to meet essential expenditures before the activation of the new budget. This amount is from the consolidated fund of India. Some key features of the vote on account are listed below.

  • The vote on account is a formality passed without 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.

What is 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. 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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FAQs on 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.

  • No, the vote-on-account and interim budget are not the same. The occasion of the release of both is different. The interim budget is passed before the elections and does not carry a complete budget, whereas the vote on account is passed without presentation

  • No. The ruling government usually presents the interim budget every five years if necessary. It is not mandatory to pass the interim budget at all. The vote on account is passed each year. Which is the major difference between the two

  • A vote on account is usually valid for two months. The validity of the vote on account depends on the process of passing of budget and it being implemented. Vote on the account is generally adopted for 2 months but can be used for variable days depending upon the acceptance of the Union budget

  • The consolidated fund of India is the government's total revenue, excluding exceptional items. The vote on account or interim budget is passed based on the funds available in the consolidated budget. To take the funds from the consolidated funds, an Appropriation Bill for expenditure is required.

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