SSC Economics Sample Paper NCERT Sample Paper-5

  • question_answer
    Which of the following is not true about 'vote-on- account'?

    A)  It is a budget presented in the Parliament to cover the deficit left by the last budget

    B)  It does not allow the Government to set for the economic policies of the new plan which starts from April 1

    C)  It prevents the Government from imposing fresh taxes or withdrawing old one

    D)  This allows the Government to withdraw an amount for a period with the consent of Parliament

    Correct Answer: A

    Solution :

    [a] If Parliament is not able to vote the entire budget before the commencement of the new financial year (like in 2014, with elections round the comer and a new government was expected by May), it is necessary to keep enough money at the disposal of government to allow it to run the administration of the country. When the government needs to withdraw any money from the Consolidated Fund of India to cover its expenditure (especially during the time when elections are underway and a caretaker government is in place), it has to seek approval from the Parliament. A special provision is, therefore, made for a vote-on account' by which the government obtains the vote of Parliament for a sum sufficient to incur expenditure on various items for a part of the year. This sanction of Parliament for withdrawal of money from the Consolidated Fund of India to meet the government's expenses is generally known as a vote-on-account. Apart from this, there are also the revised estimates of the expenditure incurred by the government during the financial year that is coming to an end. These estimates provide an assessment of how efficiently the government spent its resources. There are also the revised estimates of the government revenue from different sources. So, a vote-on-account gives one an idea of the effectiveness of the policies to mobilise tax and non-tax revenues. Normally, the vote-on-account is taken for two months only. But during election year or when it is anticipated that the main Demands and Appropriation Bill will take longer time than two months, the vote-on-account may be for a period extending two months. Typically this period does not exceed six months, as that is the maximum gap possible between two sittings of the Parliament. Normally a vote-on-account is in operation till the full Budget is passed. Vote-on-account is different from an interim Budget. While a vote-on-account deals only with the expenditure side of the government's budget, an interim Budget is a complete set of accounts, including both expenditure and receipts.

You need to login to perform this action.
You will be redirected in 3 sec spinner