What is the difference between Interim Budget and Vote on Account?
An Interim Budget is presented by the Government in the Parliament in case it has no time to present the complete budget. This generally happens when the elections are approaching and the Budget is to be presented before the voting is done. It is only justified if the ruling Government presents the Budget. This way the Government in action would have the rights until the end of the financial year and not the outgoing government. When the new government frames a new budget, it can either change or follow the estimates set in the interim budget as it deems fit. It is however presented for the whole year just like a regular budget. In the Interim Budget, the Election Commission binds the Government by various policies that may not lead to influencing the general public before the voting begins. Difference Between Interim Budget and Vote on Account  Interim Budget Vote on Account During the time of approaching elections, it is not practical to present a full budget, therefore the government presents an interim budget. Vote-on-Account is a provision by which the government seeks Parliaments approval for funds that are sufficient to bear the expenditure till the formation of a new government takes place Interim Budget consists of both expenditure and receipts A vote-on-account lists only the expenditure beared by the government It has to be discussed in the Lok Sabha and then passed. A Vote-On-Account is treated as a formal matter so it can be passed by the Lok Sabha without discussion The Government of India has the power to make changes in the tax regime in the interim budget also. Vote on Account cannot change the Direct Taxes at any cost. Any alteration in direct taxes can only be brought about by passing of the Finance Bill. It is like a budget for the transition period ( when there are a few months of the Government remaining in power) The vote-on-account can be passed through the interim budget. It is passed through the interim budget and allows the Government to meet small expenditures before elections occur. It is passed as a convention and no discussion as such takes place in it. It is like a grant in advance that the government needs to function till the time vote on demand for grants and passing of Finance Bill and Appropriation Bill occurs.