Budget FAQ 2024: Interim Budget vs Vote on Account - How two are different?
Before this, Piyush Goyal, then serving as the acting Finance Minister, presented the interim budget preceding the 2019 General Elections. Goyal had stepped in for Arun Jaitley, who was not well during that period.
Following the reelection of the Narendra Modi-led government in 2019, Sitharaman assumed the role of finance minister and delivered the comprehensive budget on July 5, 2019.
But what is an interim budget and how is it different from the vote on account?
Interim Budget
An interim budget serves as a framework for managing provisional expenditures over a short duration, usually spanning a few months, until a new government takes office at the central level.
The conclusion of the fiscal year on March 31 corresponds with the typical transition period to a new government in late May or early June.
The interim budget is strategically crafted to meet the financial requirements and tackle revenue considerations of the recently established government during this interim period. Following the inauguration of the new government, a comprehensive budget for the remaining portion of the fiscal year is typically presented in July.
Despite being presented for the entire year, similar to a regular budget, the interim budget is subject to constraints imposed by the Election Commission.
These constraints aim to prevent the government from implementing policies that could unduly influence the general public before the commencement of voting.
Vote on Account
Vote on Account is passed through the interim budget, enabling the government to address expenses in the period leading up to elections. This procedure is conducted as a customary practice, devoid of any major deliberations.
