Consider the following statements about “Vote-on-Account”:
1.It is used by a regular government, whereas a caretaker government cannot use this.
2. It pertains only to the expenditure side of the budget.
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
Explanation
If the budget has not been passed and the government needs money to carry on its normal activities, then to overcome such difficulty, the Constitution has authorized the Lok Sabha to make any grant in advance in respect to the estimated expenditure for a part of the financial year, pending the completion of the voting of the demand for grants and the enactment of the Appropriation bill. This provision is known as the ‘vote on account’.
Statement 1 is not correct: It can be presented by both the regular government and the caretaker government.
Statement 2 is correct: 'Vote on Account' deals only with the expenditure side of the government's budget. Through ‘Vote on Account', the government obtains the vote of the Parliament for a sum sufficient to incur expenditure on various items for a part of the year
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