Official Answer Key & Detailed Solution
Ready to check the official UPSC Answer Key?
Click any option above to test yourself under exam conditions, or reveal the explanation directly.
Correct Answer: Option (B) — 2 only
Concept & Option Breakdown
Standard Reference VerifiedStatement 1 is incorrect: An interim budget can be presented by any incumbent government (regular or caretaker) during an election year to avoid binding the incoming government with new full-year policies. A vote-on-account is also used by regular governments to draw bridge financing from the Consolidated Fund before the full Appropriation Bill is enacted.
Statement 2 is correct: A vote-on-account is merely a grant in advance to meet essential expenditure requirements, whereas an interim budget is a comprehensive mini-budget that includes estimates of both receipts (revenue) and expenditure.
Practice Full-Length & Sectional Prelims Mocks on this Interface
50 simulated tests in the APT Prelims Test Series (₹1,493) or 1-on-1 Mentorship with Avinash Sir.