Union Budget 2025 | FAQs: How interim budget is different from vote-on-account

More often than not, people confuse the interim budget with vote-on-account and use the two interchangeably. While the former includes both expenditures and receipts, the latter only includes expenditure.

While there will only be a single budget in 2025, which Finance Minister Niramala Sitharaman is set to present of February 1, 2024 saw an interim budget prior to the Lok Sabha elections, is the case during an election year. Amidst the interim budget, a vote-on-account budget was also passed. But what exactly is the difference between the two?

More often than not, people confuse the interim Budget with vote-on-account and use the two interchangeably. While the former includes both expenditures and receipts, the latter only contains expenditures.

What is Interim Budget

During the election year, the government in power presents an interim Budget instead of the full Union Budget. It is a temporary Budget that covers a short period of time, until the election results are out.

Interim Budget gives the government spending rights till the end of fiscal year which falls on March 31.

The first part of the interim Budget is the same as an annual Budget (preceding year's income and expenses). But, only a documentation of the proposed basic expenses till the elections are included in the interim Budget.

In this Budget, any major policy changes that can influence the voters unfairly are not permitted, as per the Election Commission's regulations.

The government passes a vote-on-account allowing it to meet the administration expenses.

What is Vote-on-account

A vote-on-account is passed through an interim Budget. It is passed as a convention without discussion allowing the government to handle expenses for a short time leading up to elections.

Usually valid for two months, vote-on-account is like a grant-in-advance to the government enabling it to function properly. It is passed to meet the government's essential expenditures like salaries and ongoing expenses in various sectors.