1) Consider the following statements regarding Vote on Account
It only represents the expenditure side of the government’s budget.
No direct tax proposals can be made via vote on account.
It is also called as an Interim Budget.
Which of the statement(s) given above is/are not correct?
a.
b.
c.
d.
Answer : c
Budget has to be approved by Parliament before the commencement of the new financial year.
But the discussion and passing of Budget generally goes beyond the current financial year.
So a special provision called “Vote on Account” is used, where the government obtains the vote of Lok Sabha to withdraw money from CFI to keep the money flowing for the government’s day to day functions, until the Budget is passed. (Article 116)
e.g Salary to government employees, loan interest payments, subsidies, pension payments etc.
It is also used in the years where Lok Sabha elections are due.
But here vote on account is also presented along with minor policy changes, as it would be improper for the outgoing government to impose major budgetary constraints on its successor.
Such a measure that includes both short term expenditure and income part is called an Interim Budget.
2) Consider the following statements about Neutron Stars
Neutron stars are typically objects of very small radius composed predominantly of neutrons.
Neutron stars are formed by same process as that of a Black hole.
Which of the statement(s) given above is/arecorrect?