A vote-on-account is a formal request by the government to the
Parliament, to allow it to utilise the Consolidated Fund of India for
meeting its expenses till the time of the election
As per Indian Constitution,, the earnings of the government are the Consolidated Fund of India. Before each election, the Parliament votes to allow the outgoing government to meet regular government expenses, including the salaries of government employees, loan interest payments, subsidies and pensions.
Because the government would be in transition soon after a vote-on-account is sought, such a budget announcement does not present a full picture of expected income and expenditure for the whole financial year, but only a list of expenditures
Vote-on-account versus full budget
A key point of difference between a vote-on-account and a full-fledged Union budget is that the former is only valid for two months (until the new government presents its budget) while the latter is for a whole year.
As per Indian Constitution,, the earnings of the government are the Consolidated Fund of India. Before each election, the Parliament votes to allow the outgoing government to meet regular government expenses, including the salaries of government employees, loan interest payments, subsidies and pensions.
Because the government would be in transition soon after a vote-on-account is sought, such a budget announcement does not present a full picture of expected income and expenditure for the whole financial year, but only a list of expenditures
Vote-on-account versus full budget
A key point of difference between a vote-on-account and a full-fledged Union budget is that the former is only valid for two months (until the new government presents its budget) while the latter is for a whole year.
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