A Vote on Account is a temporary financial arrangement through which the Parliament authorizes the government to withdraw money from the Consolidated Fund of India to meet essential expenses for a short period. It is used when the full Union Budget cannot be passed, such as during general elections or a change in government.
The constitutional basis of Vote on Account lies in Article 116 of the Indian Constitution, which allows Parliament to make grants in advance for part of a financial year. This provision ensures continuity of government functioning while maintaining parliamentary control over public expenditure.
Vote on Account Features
The Vote on Account has several important features that make it different from a regular budget:
- It allows the government to withdraw funds for a limited period, usually covering essential expenses only.
- It is generally applicable for a few months, but the duration can vary depending on circumstances.
- Only essential government expenditures such as salaries, pensions, interest payments, and ongoing schemes are covered.
- No new policies, schemes, or major tax changes are introduced under a Vote on Account.
- It is presented and approved by the Lok Sabha, as it involves government expenditure.
- It acts as a temporary financial arrangement until the full Union Budget is passed.
Difference Between Vote on Account and Interim Budget
The Difference Between Vote on Account and Interim Budget has been discussed below in detail.
| Difference Between Vote on Account and Interim Budget | |
| Vote on Account | Interim Budget |
|
It is a temporary permission given by Parliament to the government to meet essential expenses for a short period. |
It is a provisional budget presented when the full Union Budget cannot be introduced, generally before general elections. |
|
It allows withdrawal of money only for essential and routine government expenditure. |
It presents a complete picture of government finances, including revenue and expenditure estimates. |
|
It does not include details of government income or fiscal position. |
It includes estimates of revenue, expenditure, fiscal deficit, and ongoing schemes. |
|
No new policies, schemes, or announcements are allowed under it. |
Limited policy announcements may be made. |
|
No tax changes can be proposed through it. |
Minor tax changes may be included. |
|
It is valid only for a short duration until the full budget is passed. |
It covers the entire financial year. |
|
Its main purpose is to ensure continuity of government functioning. |
Its purpose is to present the financial position until a new government presents the full budget. |
Vote on Account Significance
The Vote on Account is significant because it ensures that the functioning of the government does not stop when the full Union Budget cannot be passed.
- It ensures smooth running of government administration during elections or transition periods
- It allows payment of salaries, pensions, interest, and other essential expenses
- It prevents financial disruption and administrative paralysis
- It upholds constitutional principles of parliamentary approval for spending
- It avoids misuse of power by restricting new policies and major announcements
- It acts as a bridge between two budgets, ensuring financial stability
UPSC CSE Prelims PYQs
- With reference to Union Budget, consider the following statements: [2024]
- The Union Finance Minister on behalf of the Prime Minister lays the Annual Financial Statement before both the Houses of Parliament.
- At the Union level, no demand for a grant can be made except on the recommendation of the President of India.
Which of the statements given above is/are correct?
- a) 1 only
- b) 2 only
- c) Both 1 and 2
- d) Neither 1 nor 2
Answer (b)
- What is the difference between “vote-on-account” and “interim budget”? [2011]
- The provision of a “vote-on-account” is used by a regular Government, while an “interim budget” is a provision used by a caretaker Government.
- A “vote-on-account” only deals with the expenditure in the Government’s budget, while an “interim budget” includes both expenditure and receipts.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer (b)
Last updated on January, 2026
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Vote on Account FAQs
Q1. What is a Vote on Account?+
Q2. Why is a Vote on Account needed?+
Q3. Which constitutional article provides for Vote on Account?+
Q4. For how long is a Vote on Account valid?+
Q5. Can new schemes be announced under Vote on Account?+
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