1991: How P. V. Narasimha Rao Made History

by Sanjaya Baru

The Congress then upped its demand by insisting on a ‘vote on account’. A vote on account is a legislative device by which Parliament allows the government to continue spending so that the normal business of government can go on, and salaries are paid. The regular annual budget statement and the parliamentary approval of the ‘finance bill’ enables the government to legislate changes in tax policy. Through a regular budget the government can bring in new tax laws and raise additional revenue. A vote on account implies that government revenues are determined by existing tax laws. Deferring the presentation of a regular budget would also mean that no other legislative or policy business would get done and the important policy changes being demanded by the IMF would not get implemented.