Difference Between Vote on Account and Interim Budget

Difference Between Vote on Account and Interim Budget

Sometimes interim budget and vote on account represent the same things, but there are a few fundamental difference between Vote on Account and Interim Budget. 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.

Vote on Account and Interim Budget

Difference Between Vote on Account and Interim Budget
Interim Budget	Vote on Account
An interim budget is set in motion when the incumbent government cannot present a full union budget, usually during an election.	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; expenditures 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

Vote on Account and Interim Budget

The 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.

• An interim budget meaning is that it is a complete set of accounts that include; both receipts and expenditures.
• The finance minister presents the interim budget during a joint sitting of the 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.

Conclusion:

Key Difference Between Vote on Account and Interim Budget

The key Difference Between Vote on Account and Interim Budget is that Vote on Account contains just the government’s expenses, whereas the interim Budget deals with receipts and payments. The vote-on-account is valid for two months, while Interim Budget is a budget for the change period (when elections are approaching).

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