Vote on Account
v Definition: Grant of funds IN ADVANCE for the Short period (say 2 or 4 months) instead of FULL YEAR BUDGET is sanctioned by Parliament is called VOTE ON ACCOUNT.
v In simple, a Statement, where the Government presents an estimate of a sum required to meet the expenditure that it incurs during the first 2 or 4 months of an financial year until a new government is in place, to keep the machinery running without a difficulty.
v Duration: Normally, the Vote on Account is taken for two months only. But 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 for a period exceeding two months.
v Authority: Article 116 of the Constitution of India.
v Why required: Occasions may arise, such as formation of a New House of Parliament ( means New Government) after General elections or other developments owing which the Governments may delay the presentation of FULL YEAR BUDGET.
v Sometimes, system of constituting the Special Parliamentary standing committee to study the Budget in detail. In such cases, presentation of FULL YEAR BUDGET is not practicable before the commencement of Financial year i.e., 1st April.
v In such situations, seek authority for expenditure for a short duration of a few months (usually 4 months) until the Budget for full Financial year is passed by the Parliament.
v Remember, the Parliament consists of 1. President of India 2. Lok sabha (House of the Peopl) 3. Rajya Sabha (Council of States).
v Latest example is - Vote on Account for four months in 2014-15 Financial year i.e., from April to July' 2014.
DIFFERENCE BETWEEN VOTE ON ACCOUNT & INTERIM BUDGET
A Vote On Account deals only the expenditure side, whereas Interim Budget is deals both the Expenditure and Receipts.