What is an Interim Budget?
An Interim Budget is presented by a government that is going through a transition period or is in its last year in office ahead of general elections. Interim Budget, therefore covers a specific period, usually a few months until a new government is formed and a full budget is presented.
Interim budget ensures the continuity of government expenditure and essential services until a full budget is presented by the new government.
What is Vote on Account?
To meet essential government expenditures for a limited period (generally granted for two months for an amount equivalent to one-sixth of the total estimation) until the budget is approved. It ensures the smooth functioning of the government and public services until the regular budget is approved.
Difference Between Interim Budget and Vote on Account?
Particulars Interim Budget Vote on Account Constitutional Provision Article 112 Article 116 Purpose Financial Statement presented by the government ahead of general elections to ensure the continuity of government expenditure and essential services until a full budget is presented by the new government. To meet essential government expenditures for a limited period until the budget is approved. Expenditure Duration Covers a specific period, usually a few months until a new government is formed and a full budget is presented. It is generally granted for two months for an amount equivalent to one-sixth of the total estimation. Policy changes Can propose changes in the tax regime. Cannot change the tax regime under any circumstances. Impact on Governance Provides continuity in governance during the transition period between two governments. Ensures the smooth functioning of the government and public services until the regular budget is approved.