What permission does the “Vote on Account” give to the Union Government?5
What permission does the “Vote on Account” give to the Union Government?
- 1Permission to take public debtfalse
- 2Permission to take loan from RBIfalse
- 3Permission to provide grants to the statesfalse
- 4Permission to withdraw money from the Consolidated Fund of India for a specified periodtrue
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Answer : 4. "Permission to withdraw money from the Consolidated Fund of India for a specified period"
A vote on account is the process by which an incumbent government obtains votes from Parliament to draw money from the Consolidated Fund of India to meet its expenses until the elections are done.
As per the Constitution, all the revenue received by the Union government and the loans raised by it is parked in the Consolidated Fund of India.
In the run-up to every general election, Parliament votes to sanction the withdrawal of money from this fund to meet regular government expenses such as payment of salaries and interest. Vote-on-account is a temporary measure, it does need the approval of Parliament and it is usually passed without much discussion.
It is usually valid for two months until the new government presents a full Budget. Ministries and departments can utilize the funds available for non-plan expenditure which includes payments of salary to government employees, loan interest payments, subsidies, and pension payments, based on the vote on account.