Topic: Government Budgeting
6) Why cannot an outgoing government present a full budget? Discuss the issues involved and need for clear guidelines on this also elaborate on the utility of an Interim budget in such a scenario. (250 words)
Indian Polity by Lakshmikant
Why this question:
The question is to evaluate the method of Interim budget – its need, functionality and procedure. Also, one has to discuss the utility of Interim budget.
Key demand of the question:
Analyse in detail the features of an Interim budget, ow is it different from a full budget ? what are the nuances of it.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
In a few introductory lines explain that Conventionally, a government at the end of its term goes in for a vote on account rather than a full Budget. Therefore, the debate on the issue. While few favor the full budget, others oppose it on the ground that this is an election year and the government has already presented 5 full budgets.
In brief discuss –
- Discuss the procedure of budget – role of Article 266, 114 of the constitution.
- What is vote on account? Why is it presented?
- Interim budget? – An Interim Budget is not the same as a ‘Vote on Account’. While a ‘Vote on Account’ deals only with the expenditure side of the government’s budget, an Interim Budget is a complete set of accounts, including both expenditure and receipts. An Interim Budget gives the complete financial statement, very similar to a full Budget.
- Compare and contrast the full budget with that of an interim budget.
- Discuss measures/ solutions required in direction to resolve and overcome the present controversies.
Conclude with what needs to be done, suggest way forward.