The Finance Minister is all set to present her sixth Budget in a row and since it is a general elections year, the government will be allowed only to present an Interim Budget or Vote-on-account instead of a regular full Budget.

About Interim Budget vs Vote-On-Account:

• An interim budget serves as a framework for managing provisional expenditures over a short duration, usually spanning a few months, until a new government takes office at the central level.
• An interim budget generally includes the current state of the economy, plan and non-plan expenditures and receipts, changes in tax rates, revised estimates of the current financial year, and estimates for the coming financial year.
• Despite being presented for the entire year, similar to a regular budget, the interim budget is subject to constraints imposed by the Election Commission.
  • These constraints aim to prevent the government from implementing policies that could unduly influence the general public before the commencement of voting.
• The Parliament passes a Vote-on-account to meet essential expenditures such as salaries of central government staff, funding of ongoing projects, and other government expenditures.
  • In other words, it accounts for only expenditures to be borne by the outgoing government for a period of two months, which may be extended to four months on special circumstances.  
• The interim budget serves as a financial plan during a transitional period, typically when there are only a few months left in the current government’s tenure. The vote-on-account can be approved within the framework of the interim budget.
• Like a full budget, an interim budget will be discussed and passed in the Lok Sabha, and in the case of a vote-on-account, it will be passed without any formal discussion as such.
• An interim budget can propose changes in the tax regime, whereas a vote-on-account cannot change the tax regime under any circumstances.
• Vote-On-Account is a parliamentary approval for withdrawing money from the Consolidated Fund of India from April to June/July or until the new Government presents its full-fledged budget. 
  • It can be termed an advance grant, interim arrangement, and authorisation for the outgoing government to draw the money from the above-said fund and meet short-term expenditures.
• As far as validity is concerned, the interim budget is valid throughout the year whereas the vote-on-account is valid only for a period of two to four months.