Prelims 2011 Practice MCQ No.

1
What is the difference between "vote on account" and Consider the following statements:
"interim budget"? Statement-I: The Government presents Interim Budget in an Election
1. The provision of a "vote-on-account" is used by a Year.
regular Government, while an "interim budget" is a Statement-II: Article 112 of the Indian Constitution provides for the
provision used by a caretaker Government. presentation of Interim Budget in an Election Year.
2. A "vote-on-account" only deals with the
expenditure in Government's budget, while an Which one of the following is correct in respect of above statements?
"interim budget" includes both expenditure and (a) Both Statement-I and Statement-II are correct and Statement-II is
receipts. the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is
Which of the statements given above is/ are correct? not the correct explanation for Statement-I.
(a)1 only (b) 2 only (c) Statement-I is correct but Statement-II is incorrect
(c) Both 1 and 2 (d)Neither 1 nor 2 (d) Statement-I is incorrect but Statement-II is correct.

Practice MCQ No.2

Which among the following best describes the difference between Interim Budget and Vote on Account?
(a) The Interim Budget is presented in an Election year while Vote on Account is always part of full Union Budget.
(b) The Interim Budget deals with both Receipts and Expenditure while Vote on Account only deals with Receipts.
(c) The Interim Budget is applicable only for a part of the year while the Vote on Account is applicable for the entire year.
(d) The Interim Budget deals with both Receipts and Expenditure while Vote on Account deals with Expenditure and is part of
Interim Budget.
 Criteria Union Budget Interim Budget
When is it presented? Presented in normal year Presented in an election year

Constitutional Requirement? Yes. Presented in accordance with Article 112 No. Presented in accordance with Parliamentary
Convention.

Applicability Applicable for the full year Usually Applicable until the new Government takes
over and formulates Union Budget.

Does it include Finance Bill? Yes. The Finance Bill is included to make important As a matter of convention, Government does not
changes to the Taxation. tinker with the Tax rates.
The Finance Bill is introduced to continue with the
existing tax rates.
However, in some of the previous Interim Budgets,
convention has not been followed. The Government
has changed the tax rates in Interim Budget.

Does it include Vote on No.

Yes.
Account?
Earlier, Vote-on-Account was needed as the Budget
The Government takes approval of the Parliament
used to be presented in the last week of Feb and was
to withdraw money from the Consolidated Fund of
passed in May.
India until the Union Budget gets passed.
However, now, it is not needed as the Budget is
presented on 1st Feb and it gets passed before April 1
 Criteria Interim Budget Vote On Account

When is it presented? It is presented only in an election Year Earlier, it was included as part of Union Budget
when Budget was presented in last week of Feb.

Included in Constitution No. Presented as matter of Parliamentary Yes. Included in Article 116 of Constitution.
Convention
What does it include? Details of Receipts and Expenditure of Government Government takes approval of Parliament to
withdraw money from Consolidated Fund of India
until the Union Budget gets passed.

Can it make changes to Tax Yes. Interim Budget includes Finance Bill which can No. The Vote on Account deals only with the
Rates? introduce changes in Tax Rates. Expenditure

Relationship Interim Budget includes Vote-on-Account Vote on Account is part of Interim Budget
 Prelims 2011 Practice MCQ No.1
What is the difference between "vote on account" and Consider the following statements:
"interim budget"? Statement-I: The Government presents Interim Budget in an Election
1. The provision of a "vote-on-account" is used by a Year.
regular Government, while an "interim budget" is a Statement-II: Article 112 of the Indian Constitution provides for the
provision used by a caretaker Government. presentation of Interim Budget in an Election Year.
2. A "vote-on-account" only deals with the
expenditure in Government's budget, while an Which one of the following is correct in respect of above statements?
"interim budget" includes both expenditure and (a) Both Statement-I and Statement-II are correct and Statement-II is
receipts. the correct explanation for Statement-I.
(b) Both Statement-I and Statement-II are correct and Statement-II is
Which of the statements given above is/ are correct? not the correct explanation for Statement-I.
(a)1 only (b) 2 only (c) Statement-I is correct but Statement-II is incorrect
(c) Both 1 and 2 (d)Neither 1 nor 2 (d) Statement-I is incorrect but Statement-II is correct.

Practice MCQ No.2

Which among the following best describes the difference between Interim Budget and Vote on Account?
(a) The Interim Budget is presented in an Election year while Vote on Account is always part of full Union Budget.
(b) The Interim Budget deals with both Receipts and Expenditure while Vote on Account only deals with Receipts.
(c) The Interim Budget is applicable only for a part of the year while the Vote on Account is applicable for the entire year.
(d) The Interim Budget deals with both Receipts and Expenditure while Vote on Account deals with Expenditure and is part of
Interim Budget.
 BASICS OF BUDGET
Prelims 2020 Practice MCQ No. 4
Along with the Budget, the Finance Minister also places other Consider the following statements related to Contingency Fund
documents before the Parliament which include "The Macro of India:
Economic Framework Statement. The aforesaid document is 1. The Fund has been established by the Parliament through a
presented because this is mandated by separate law.
(a) Long standing parliamentary convention 2. The Corpus of the Fund is Rs 500 crores.
(b) Article 112 and Article 110 (1) of the Constitution of India 3. The entire fund held on behalf by President by Secretary, Dept.
(c) Article 113 of the Constitution of India of Economic Affairs in Ministry of Finance.
(d) Provisions of the Fiscal Responsibility and Budget Management
Act, 2003 How many statements given above is/are correct?
(a) Only One (b) Only Two (c) Only Three (d) None
Practice MCQ No. 3
Practice MCQ No. 5
Which among the following gets credited to the Consolidated Fund
of India? With among the following is/are part of Public Account of India?
1. Public Deposits with Public Sector Banks 1. Public Deposits with Public Sector Banks
2. Public Deposits with Post Offices 2. National Small Savings Fund (NSSF)
3. Cess collected by the Centre 3. GST Compensation Fund
4. Transfer of Dividend from RBI to Government. 4. National Investment Fund

Select the correct answer using the code given below: Select the correct answer using the code given below:
(a) Only One (a) Only One
(b) Only Two (b) Only Two
(c) Only Three (c) Only Three
(d) All Four (d) All Four
 BASICS OF BUDGET
Practice MCQ No. 6 Practice MCQ No. 7
Which among the following documents are mandated to be Consider the following statement related to Annual Financial
presented along with the Budget Documents under the Indian Statement:
Constitution? 1. The Annual Financial Statement provides details of the
1. Finance Bill Receipts and Expenditure of only the Present and Next
2. Demand for Grants Financial Year.
3. Macro-Economic Framework Statement 2. The Annual Financial Statement should distinguish its
revenue expenditure from other expenditure as mandated
Select the correct answer using the code given below: under Indian Constitution.
(a) Only One (b) Only Two (c) Only Three (d) None
How many statements given above is/are correct?
(a) Only One (b) Only Two (c) Only Three (d) None
 Budget Documents
Documents mandated under Constitution Documents mandated under FRBM Act, Documents presented due to
2003 Parliamentary Convention
Annual Financial Statement (Article 112)
Details of Receipts and Expenditure for 3 Macro-Economic Framework Statement Expenditure Budget:
years. Expenditure by the Ministries and
Medium Term Fiscal Policy Statement
• Past Year: Actuals of Receipts and Departments on various Central Sector and
Expenditure Fiscal Policy Strategy Statement Centrally Sponsored Schemes
• Present Year: Estimates of Receipts and
Receipt Budget:
Expenditure
Details of tax and non-tax revenue receipts
• Next Year: Estimates of Receipts and
and capital receipts and explains the
Expenditure
estimates
Receipts and Expenditure are shown under 3
Accounts: Consolidated Fund of India,
Contingency fund and Public Account of India.

Demand for Grants (Article 113)

• Details of Expenditure “Not Charged upon
Consolidated Fund of India” of Ministries
and Departments and Union Territories.
• Total Demand for Grants: 102
• Voted upon by the Lok Sabha.
Finance Bill (Article 110)
• Changes to the Tax rates
• Important Legal Changes
 Details of the Funds
Consolidated Fund of India Contingency Fund of India (Article 267) Public Account of India (Article 266)
(Article 266)
Constitution empowers Parliament to establish What does it include?
What does it include? Contingency Fund through a law. • Money held by the Government in
Entire Tax and Non-Tax Revenue Trust- Small Savings Deposits, Provident
Established through Contingency Fund of India
Loans Fund etc.
Act, 1950
Receipts from Recovery of Loans • Money set aside for Specific purpose-
Placed at the Disposal of the President to meet Education, Health, etc.
Is there a need for Prior
exigencies.
Approval of Parliament to Separate Funds
withdraw money? Held on behalf by President by Secretary, Dept. of Central Road and Infra Fund
Yes. Eco Affairs in Ministry of Finance Pradhan Mantri Swasthya Suraksha Nidhi
Recent Changes (Budget 2021-22): Prarambik Shiksha Kosh; Madhyamik and
• Increase in corpus from Rs 500 crores to Rs Uchhatar Shiksha Kosh
30,000 crores. GST Compensation Fund
• 40% of the corpus will be placed with Monetization of National Highways Fund
Secretary, Dept of Expenditure, Ministry of Agriculture Infrastructure and Devp Fund
Finance and remaining 60% with Secretary, NDRF and National Investment Fund
Dept of Eco Affairs. Is there a need for Prior Approval of
Is there a need for Prior Approval of Parliament to Parliament to withdraw money?
withdraw money? • No Prior approval needed for
No. Need for Ex-post Facto Approval withdrawal of Public Money
• Approval needed for withdrawal of
money kept in separate funds