Very often, discussion and voting of demands for grants and passing of Appropriation Bill go beyond the current financial year. This was precisely the case before when the budget was presented on the last working day of February, and it was difficult to get passed within the same financial year. Since Parliament is not able to vote the entire budget before the commencement of the new financial year, the necessity to keep enough finance at the disposal of Government.
Vote on Account is a grant in advance to enable the government to carry on until the voting of demands for grants and the passing of the Appropriation Bill and Finance Bill. This enables the government to fund its expenses for a short period of time or until a full-budget is passed. As a convention, a vote-on-account is treated as a formal matter and passed by Lok Sabha without discussion.
Enroll Now. Vote on Account was frequently used until when the Budget was presented on the last working day of February. However, since , the budget presentation date was advanced to February 1.
This helped the executive to use almost 2 months time to get the full-budget passed in the same financial year. So, since , Vote on Account is not usually used as part of the government budgeting process , unless in special cases like an election year. Normally, the Vote on Account is taken for two months only. The sum of the grant would be equivalent to one-sixth of the estimated expenditure for the entire year under various demands for grants.
During election year or when it is anticipated that the main Demands and Appropriation Bill will take longer time than two months, the Vote on Account may be granted for a period exceeding two months. An interim budget in all practical sense is a full budget but made by the government during the last year of its term — ie.
An interim Budget is a complete set of accounts, including both expenditure and receipts. But it may not contain big policy proposals. Though the convention is to present an interim budget and get the fund required for spending via the vote on account route, the government if it wishes so can even go for a Full Budget and get the appropriation bills passed to get the finances.
It is however presented for the whole year just like a regular budget. In the Interim Budget, the Election Commission binds the Government by various policies that may not lead to influencing the general public before the voting begins. During the time of approaching elections, it is not practical to present a full budget, therefore the government presents an interim budget.
A vote-on-account lists only the expenditure beared by the government. A Vote-On-Account is treated as a formal matter so it can be passed by the Lok Sabha without discussion. The Government of India has the power to make changes in the tax regime in the interim budget also.
Vote on Account cannot change the Direct Taxes at any cost. Any alteration in direct taxes can only be brought about by passing of the Finance Bill.
It is like a budget for the transition period when there are a few months of the Government remaining in power. The vote-on-account can be passed through the interim budget. It is passed through the interim budget and allows the Government to meet small expenditures before elections occur. It is passed as a convention and no discussion as such takes place in it. Exchange Rate. What is the ratio of the stock of money to the stock of high powered money in an economy called? Direct taxes consist of taxes on incomes of individuals.
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