Budget 2024: What is Vote on Account? Significance and more…
Union Budget on February 1, 2024, along with the general elections in the same year. During an election year, the government does not present a full-fledged Budget for the whole year, instead the government prepares an interim budget or a vote on account. Livemint explains what these terms mean and how they are different from the Union Budget.
As defined by Article 116 of the Indian Constitution, a vote on account is an advance grant to the government from the Consolidated Fund of India to cover short-term expenditure requirements until the new financial year begins. There is a Consolidated Fund of India, defined in Article 266 of the Indian Constitution, which stores all the revenue generated by the central government, including taxes, interest on loans, and a portion of state taxes. In accordance with the Act, the Consolidated Fund may not be withdrawn except under an appropriation undertaken by law and approved by the Centre each year during the Union Budget.
During an outgoing government, an interim budget is presented, or a vote on account is sought. The next government will be responsible for presenting the full budget. The vote on the account cannot impact the tax regime.
Under the constitution, money cannot be withdrawn by the government from the Consolidated Fund of India unless it has been appropriated by law. This is accomplished by passing an appropriation bill during the Budget process. Nevertheless, passing the appropriation bill through the Parliament and becoming a law may take time.
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