UPSC CSE Prelims 2011
Statement 2 is correct. A vote-on-account is a parliamentary authorization for the government to draw funds from the Consolidated Fund of India to meet essential expenditure for a short period, typically two to three months, until the full budget is passed. It exclusively deals with the expenditure component of the government's financial requirements. In contrast, an interim budget is a comprehensive financial statement that includes both estimated receipts and expenditures for the entire financial year, although it is presented for a transitional period, often when general elections are approaching.
Statement 1 is incorrect. The provision of a vote-on-account is not restricted to a regular government; it can be utilized by any government (regular, outgoing, or caretaker) to ensure continuity of essential services and administrative functions. Similarly, an interim budget is typically presented by a regular government when general elections are imminent and a full budget cannot be presented before the new government takes office. It is not solely a provision for a caretaker government.