Parliament: UPSC Previous Year Questions (Polity)

Explanation

If the Union Budget is not passed by the Lok Sabha, it indicates a lack of confidence in the government’s financial proposals. Since the government is responsible for presenting and managing the budget, this failure typically results in a crisis of confidence. In such a scenario, the Prime Minister and the Council of Ministers are expected to resign, as the government’s authority is effectively undermined.

Explanation

Statement 1 is incorrect: During the time of approaching elections, it is not practical to present a full budget, therefore the government presents an interim budget. Interim Budget can be presented by all governments whether incumbent or regular or caretaker.

Statement 2 is correct: The Appropriation Bill becomes an Act after Presidential assent, authorizing withdrawals from the Consolidated Fund of India. Since its enactment takes time, the government cannot withdraw funds beyond March 31. To address this, the Lok Sabha grants a ‘Vote on Account’, allowing advance funds for essential expenses, usually for two months, covering one-sixth of the total estimated expenditure, until the Appropriation Bill is passed. A vote-on-account contains only the expenditure of the government’s budget while an Interim Budget is a complete set of accounts i.e. it includes both expenditure and receipts.