economics medium Fill in the Blank

When the Parliament is unable to pass the full Union Budget before the start of the new financial year, it grants the executive a temporary authorization to incur essential expenditure, commonly known as a ___.

  1. government spending (or autonomous expenditure)
  2. Engel's
  3. indifference
  4. Vote on Account

Answer: Vote on Account

A Vote on Account is a constitutional provision (Article 116) that allows the government to withdraw funds from the Consolidated Fund of India for a limited period (usually two months) to keep the administrative machinery running. It only covers the estimated expenditure side and strictly excludes any new taxation proposals or major policy shifts, which are reserved for the full budget debate.

Topic Public Finance - Budgeting
Exam Relevance UPSC Prelims, SSC CGL, Railway
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