The executive is given an advance grant to meet temporary and running

The executive is given an advance grant to meet temporary and running requirements of Government of India in the beginning of the new financial year until the demands are voted by the legislature. This is known as :

Vote of Credit

Vote on Account

Appropriation Bill

Advance Account

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UPSC CDS-2 – 2023

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The advance grant given to the executive to meet temporary requirements until demands are voted by the legislature is known as Vote on Account.

A Vote on Account allows the government to draw funds from the Consolidated Fund of India for a limited period (usually a few months) at the beginning of a financial year.

The Union Budget is presented in February, but the financial year starts from April 1st. The complete budget process, including voting on demands for grants and passing the Appropriation Bill, takes time. To ensure the government can meet its essential expenditure during this interim period (April 1st until the Appropriation Bill is passed), a Vote on Account is passed by the Lok Sabha. A Vote of Credit is granted for an unexpected demand that cannot be quantified, usually related to defense or other extraordinary services. An Appropriation Bill is the legislative instrument that authorizes the government to withdraw funds from the Consolidated Fund after the demands for grants are voted.

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