Vote-on-Account Explained Also Read - Subsidy on Canteen Food Served in Parliament Ends; Lok Sabha To Save Rs 8 Crore Per Year
Vote-on-Account is a special provision through which the government obtains Parliament’s assent for funds needed for expenditure for three months, till a full Budget is passed finally. This enables the current government to incur expenses until the remaining of the months leading to the next financial year. Also Read - COVID-19 Impact: No Winter Session of Parliament This Year, Budget Session Likely in January
Generally, the funds are taken from the estimated funds for the entire year under various demands for grants. Also Read - New Parliament Building to Witness Creation of 'Aatmanirbhar Bharat', Says Modi After Laying Foundation Stone | Highlights
For this, the Vote-on-Account will put forth the government’s expenditure side of the budget meaning, that before the new government is formed, the current government is expected to give an estimate of funds required during the first two to four months of election financial year.
The Vote-on-Account happens every year, irrespective whether the interim budget is presented or not. The vote-of-Account cannot alter the Direct taxes, comprising one of the most important features of the Account.
Further, Lok Sabha passes a Vote-on-Account without discussion in the Parliament as it considers it a formal matter.