This article delves into the crucial Constitutional provisions that govern India’s budgetary process, the role of the vote on account, changes since 2017, social sector and health allocations in the interim budget, as well as efforts towards education and the upliftment of poor, backward and vulnerable sections.
Constitutional Provisions & Vote on Account
As per Article 266 of the Constitution of India, Parliamentary approval is mandatory for withdrawing money from the Consolidated Fund. Furthermore, according to Article 114 (3), no withdrawal can be made without a law enacted, that is, the Appropriation bill. This process is often time-consuming, typically stretching until the end of April.
To address this, Article 116 authorises the Lok Sabha to grant funds in advance, estimated for a financial year portion. This is termed as the ‘vote on account’. It used to be a frequently used provision until 2016 when the Budget was presented at February-end. From 2017 onwards, the budget presentation date got advanced to February 1, which gave the government nearly two months to get the full-budget approved within the same financial year. Now, a vote on account is usually not part of the government budgeting process, except in special cases such as an election year.
Interim Budget Vs. Vote on Account
While a ‘Vote on Account’ pertains only to the government’s budget expenditure side, an Interim Budget is a comprehensive set, including both expenditure and receipts. However, these are only estimates for the entire year, just like the regular Budget. The incoming government maintains the freedom to modify these estimates extensively when the final Budget gets presented.
Health Allocations in the Interim Budget
The government’s flagship scheme for universal health insurance, Ayushman Bharat, saw a funding increase of 166% over the past year. Investments for other health initiatives like the National Urban Health Mission, Rashtriya Swasthya Bima Yojna and National Health Mission also saw substantial increases. However, allocation to the Swachh Bharat Mission decreased from the previous year.
| Scheme | Allocation |
|---|---|
| Ayushman Bharat | Increased by 166% |
| National Urban Health Mission | Additional Rs 250 crore |
| Rashtriya Swasthya Bima Yojna | Increased by 142% |
| National Health Mission | Grew by 3.46% |
| Swachh Bharat Mission | Decreased to Rs 12,750 crore |
Support for Poor, Backward and Vulnerable Sections
The interim budget laid out several provisions for the poor, backward and vulnerable sections. These include creating additional seats in educational institutions, aimed expenditure at bridging urban-rural divide, transforming villages into Digital Villages, and providing electricity connections to all willing households. New welfare development boards and committees have also been announced to identify and support De-notified nomadic and semi-Nomadic tribes.
Educational Initiatives and Allocations
The interim budget saw the fund allocation for the National Education Mission being increased by about 20%. The significant schemes under National Education Mission include Sakshar Bharat, Sarva Shiksha Abhiyan, Rashtriya Madhyamik Shiksha, and Teacher training programs. A national programme on Artificial Intelligence has also been envisioned to train youths for AI-related jobs.
Last Modified: February 6, 2024