SSC Selection Post 2025 PYQ — Question 17

Correct Answer

To ensure continuity of government operations until the budget is passed

Explanation

A 'Vote on Account' is a special provision that allows the government to withdraw money from the Consolidated Fund of India to meet its essential expenditures (like salaries, ongoing projects, and administrative costs) for a limited period until the full Union Budget is formally discussed and passed by the Parliament. Since the legislative process of passing the budget generally extends into the new financial year, the government needs interim funds to ensure its day-to-day machinery does not grind to a halt.

The other options are incorrect because they define entirely different financial instruments or objectives. Introducing new taxation policies is part of the Finance Bill, not a Vote on Account. Reducing the fiscal deficit is a long-term macroeconomic policy goal managed through fiscal consolidation strategies. Approving supplementary grants refers to a situation where the amount already authorized by Parliament for a specific service is found to be insufficient for that financial year.

Key Points

Under Article 116 of the Indian Constitution, the Lok Sabha is empowered to pass a Vote on Account, which acts as a pre-budget grant to keep executive operations running smoothly.

Conventionally, a Vote on Account is treated as a formal business matter and is passed by the Lok Sabha without detailed debate, usually covering a period of two months for an amount equivalent to one-sixth of the total estimation.

Additional Facts

A Vote on Account becomes particularly significant during an election year. In such times, the outgoing government generally does not present a full Union Budget; instead, it presents an Interim Budget along with a Vote on Account. This ensures that the incoming government retains the absolute democratic right to frame its own economic policies and full-year taxation plans. Unlike a full budget or an interim budget, a strict Vote on Account only deals with the expenditure side of the government's ledger and contains absolutely no proposals regarding revenue generation or changes in direct and indirect tax rates.

Important Questions and Answers

Question: Which specific article of the Constitution of India grants the Parliament the power to pass a 'Vote on Account'?

Answer: Article 116 of the Indian Constitution empowers the Lok Sabha to make a grant in advance (Vote on Account) for a part of any financial year.

Question: What is the fundamental difference between an Interim Budget and a Vote on Account?

Answer: A Vote on Account deals exclusively with the government's necessary expenditures for an interim period, whereas an Interim Budget is a complete financial statement that includes both estimated expenditures and projected revenue receipts.