What is the Difference between Vote on Account and Vote on Credit?
By Balaji
Updated on: February 17th, 2023
The difference between Vote on Account and Vote on Credit is that Vote on credit is a monetary gift to handle urgent financial needs, whereas Vote on Account refers to the Government’s short-term expenditure requirements. A vote on credit is a financial grant provided to the executive from Indian resources to satisfy financial requirements, the contents of which cannot be disclosed in the budget. Vote on Account addresses the Central Government’s short-term expenditure demands from the Indian Consolidated Fund.
Table of content
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1. Difference between Vote on Account and Vote on Credit
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2. What is the difference between Vote on Account and Vote on Credit?
Difference between Vote on Account and Vote on Credit
Voting on the account is a grant to the Central Government in advance. Votes on account, credit votes, and special awards are all mentioned in Article 116 of the Constitution.
Following are the major differences between the Vote on Account and the Vote on Credit:
Vote on the Account:
- An account vote is merely a temporary authority to spend money against the overall budget, which is a financial statement of expenditure and revenue that includes changes to taxes and government policies.
- Instead of submitting a whole budget during an election year, the government prefers to seek a vote.
- If the government changes after the election, denying it the authority to propose a budget for the remainder of the fiscal year is unwise.
Vote on Credit:
- It is supplied to address an unanticipated demand on Indian resources if the requirement cannot be stated in full in the budget because of the scope or indeterminacy of the service.
- As a result, the Lok Sabha has effectively given the executive a blank check.
Summary:
What is the difference between Vote on Account and Vote on Credit?
The key difference between a vote on account and a vote on credit is that the Vote on Account refers to the Central Government’s short-term expenditure requirements. A vote on credit is a financial gift given to executives to address urgent financial needs.
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