11/11/2016 DifferencebetweenFullBudgetandVoteonAccountClearIAS

DifferencebetweenFullBudgetandVoteonAccount
clearias.com/fullbudgetvsvoteonaccount/

ClearIASTeam 11/3/2016

WhilestudyingBudgetrelatedtopics,manyareconfusedaboutthedifferencebetweenfullbudgetandvoteon
account.Inthispost,wetrytoexplainthedifferencebetweenfullbudgetandvoteonaccount.Wewillalsobe
dealingwiththeinterimbudget.

Basicconcept:Executive(Government)needstheapprovalofLegislature
(Parliament)forspending!

Thegovernmentneedsmoneyforitsfunctioning.Eventhoughgovernmentcollectsmoneyfromthepublicby
meansofvarioustaxes,fortheexpenditureofthesame,itneedsapprovalfromanotherauthorityie.
Legislature!

Article266oftheConstitutionofIndiamandatesthatParliamentaryapprovalisrequiredtodrawmoneyfromthe
ConsolidatedFundofIndia.Besides,Article114(3)oftheConstitutionstipulatesthatnoamountcanbe
withdrawnfromtheConsolidatedFundwithouttheenactmentofalaw(appropriationbill).

TheParliamentaryApprovaltakesitstime!
Thefullbudgetisusuallypassedonlyafterlongdiscussions.Eventhoughthegovernment(executive)seeks
approvalofexpenditureforthenextfinancialyear(April1toMarch31)inthecurrentfinancialyearitself,the
approvalfromlegislaturetakesitstime.

DiscussionandvotingofdemandsforgrantsandpassingofAppropriationBillgenerallygoesbeyondthecurrent
financialyear.

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11/11/2016 DifferencebetweenFullBudgetandVoteonAccountClearIAS

Butthegovernmentneedsmoneyforitsdaytodayfunctions
SinceParliamentisnotabletovotetheentirebudgetbeforethecommencementofthenewfinancialyear,the
necessitytokeepenoughfinanceatthedisposalofGovernment.

Aspecialprovisionis,therefore,madeforVoteonAccountbywhichGovernmentobtainstheVoteof
Parliamentforasumsufficienttoincurexpenditureonvariousitemsforapartoftheyear.

Alsoread:490,NoneOfTheAbove(NOTA)andRightToReject(RTR)

VoteonAccount
VoteonAccountisagrantinadvancetoenablethegovernmenttocarryonuntilthevotingofdemandsfor
grantsandthepassingoftheAppropriationBillandFinanceBill.

Thisenablesthegovernmenttofunditsexpensesforashortperiodoftimeoruntilafullbudgetispassed.
Normally,theVoteonAccountistakenfortwomonthsonly.Thesumofthegrantwouldbeequivalenttoone
sixthoftheestimatedexpenditurefortheentireyearundervariousdemandsforgrants.

Asaconvention,avoteonaccountistreatedasaformalmatterandpassedbyLokSabhawithoutdiscussion.

CanVoteonAccountbegrantedformorethan2months?
Yes.DuringelectionyearorwhenitisanticipatedthatthemainDemandsandAppropriationBillwilltakelonger
timethantwomonths,theVoteonAccountmaybeforaperiodexceedingtwomonths.

DifferencebetweenFullBudgetandVoteonAccount
FullBudgetdealswithbothexpenditureandrevenuesidebutVoteonaccountdealsonlywiththe
expendituresideofthegovernmentsbudget.
Thevoteonaccountisnormallyvalidforfortwomonthsbutfullbudgetisvalidfor12months(afinancial
year).
Asaconvention,avoteonaccountistreatedasaformalmatterandpassedbyLokSabhawithout
discussion.Butpassingforbudgethappensonlyafterdiscussionsandvotingondemandforgrants.

Whatisaninterimbudgetthen?
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11/11/2016 DifferencebetweenFullBudgetandVoteonAccountClearIAS

Aninterimbudgetinallpracticalsenseisafullbudget,butmadebythegovernmentduringthelastyearofits
termie.justbeforeelection.AninterimBudgetisacompletesetofaccounts,includingbothexpenditureand
receipts.Butitmaynotcontainbigpolicyproposals.

Alsoread:NationalLandRecordsModernizationProgramme(NLRMP)

Isitmandatoryforthegovernmenttopresentvoteonaccountinsteadoffullbudget
inanelectionyear?
Duringanelectionyear,therulinggovernmentgenerallyoptsforavoteonaccountorinterimbudgetinsteadof
afullbudget.Whiletechnically,itisnotmandatoryforthegovernmenttopresentavoteonaccount,butitwould
beinappropriatetoimposepoliciesthatmayormaynotbeacceptabletotheincominggovernmenttakingover
inthesameyear.

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