for all defence aspirants consitutional provisions-NCA ACADEMY


ARTICLE 112(1)  of the constitution states that the president shall in respect of every financial year cause to be laid before both the houses of the parliament a statement of the estimated receipts and expenditure of the government of India for that year, referred as the annual financial statement.

The world budget is not mentioned in the constitution.

According to article 266 of the constitution, parliamentary approval is required to draw money from the consolidated fund of India.

Besides, article 114(3)  of the constitution stipulates that no amount can be withdrawn from the consolidated fund without the enactment of a law(I.E .appropriation bill).

The passing of the appropriation bill takes time and usually goes on till the end of April. But the government needs money to carry on its normal activities after 31st march (the end of the financial year).

The overcome this functional difficulty, the article 116 of the constitution has authorised the lok sabha to make any grant in advance in respect financial year, pending the completion of the voting of the demands for grants and the enactment of the appropriation bill. This provision is known as the vote on account.

Vote on account was frequently used until 2016 when the budget was presented on the last working day of February.

However, since 2017,the budget presentation date was advanced to february1. This helped the government to use almost 2 months’ time to get the full budget passed in the same financial year.

Since 2017,vote on account is not usually used as part of the government budgeting process, unless in special cases like an election year.

An outgoing government presents only an interims budget or seeks a vote on account.

An interim budget is not the same as a ‘vote on account’ while a vote expenditure side of the government ‘s budget, an interim budget is a complete set of accounts, including both expenditure and receipts.

However, the estimates are presented for the entire year, as is the case with the regular budget. The incoming government has full freedom to change the estimates completely when the final budget is presented.