Vote of credit
Topic: Government Budget, Fiscal Policy and FRBM · NCERT: Beyond NCERT
Meaning
A vote of credit is a grant for an unexpected demand whose size or nature cannot be described in the usual detail. It comes under Article 116(1)(b). Parliament gives the executive (the government) the money without a full breakdown of how it will be spent. That is why it is called a blank cheque. It is meant for rare emergencies, when detailed estimates are not possible.
Example
Suppose war breaks out suddenly. The government cannot know in advance exactly how much it will spend or on what. Parliament could then pass a vote of credit so the government can respond quickly.
Don't confuse with
- Vote on account: under Article 116(1)(a), this is an advance grant for part of the year, usually two months, until the full budget is passed. It covers normal, known spending, not an unknown emergency.
- Supplementary grant: this is for a known extra amount when the original grant falls short. A vote of credit is used when the amount cannot even be stated.
Related concepts
- Demand for grants
- Cut motion
- Guillotine
- Appropriation Bill
- Finance Bill
- Money Bill
- Vote on account
- Interim budget
- Supplementary grant
- Excess grant