BAJAJ BROKING
Definition: A provision under Article 116, vote on account, is the Parliament’s permission to the outgoing government to make use of the ‘Consolidated Funds of India’ to meet the short-term expenses until the new financial year starts.
During an election year, the running government does not present a full budget for the entire financial budget. To cover the short-term expenses lined up, the government, in a caretaker role, therefore presents a Vote on Account or interim budget. The next elected government will be responsible for presenting a full-fledged Union Budget.
Simply put, a vote on account is a financial arrangement for a few months until a new government is formed. The recent Interim Budget 2024 presented on 1st February this year is a classic example of a vote on account. As 2024 was an election year, the present Modi Government presented the Interim Budget, or sought a vote on account, in February 2024 instead of presenting the full budget. Union Budget 2024 was presented by Finance Minister Nirmala Sitharaman on 23rd July 2024.
A vote on account allows the government to take money from the Consolidated Fund of India for a short time which is usually two months. After the 1st of April, as the new financial year begins, the government needs permission for every spending. It’s a simple process that typically doesn’t involve budget. If elections are coming up soon after the start of a new financial year, the government might ask for a vote on account for up to four months. This gives Parliament temporary permission to spend money. Unlike a full Budget, which includes detailed plans for spending, taxes, and policies, a vote on account is just a quick way for the government to get the funds it needs in the meantime.
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