Explanation:

Explanation:
Budget

• Article 266 of the Constitution of India mandates that Parliamentary approval is required to draw money from theConsolidated Fund of India. Besides, Article 114 (3) of the Constitution stipulates that no amount can be withdrawn from the Consolidated Fund without the enactment of a law (appropriation bill).
• A vote on account essentially means that the government seeks the approval of Parliament for meeting expenditure —paying salaries, ongoing programmes in various sectors etc — with no changes in the taxation structure, until a new government takes over and presents a full Budget that is revised for the full fiscal.

Statement 1 is correct: Full Budget deals with both expenditure and revenue side but Vote-on-account deals only with the expenditure side of the government’s budget.

• The vote-on-account is normally valid for two months but full budget is valid for 12 months (a fi nancial year).
• As a convention, a vote-on-account is treated as a formal matter and passed by LokSabha without discussion. But passing for budget happens only after discussions and voting on demand for grants.

 Interim Budget

• Statement 2 is correct: An Interim Budget is not the same as a ‘Vote on Account’. While a ‘Vote on Account’ deals only with the expenditure side of the government’s budget, an Interim Budget is a complete set of accounts, including both expenditure and receipts. An Interim Budget gives the complete fi nancial statement, very similar to a full Budget.