The executive is given an advance grant to meet temporary and running requirements of the Government of India in the beginning of the new financial year until the demands are voted by the legislature. This is known as :

The 'Vote on Account' is a constitutional provision that allows the Lok Sabha to make an advance grant to the executive to meet temporary and running requirements of the Government of India [1]. This is necessary because the voting of demands for grants and the enactment of the Appropriation Bill often extend beyond the start of the new financial year on April 1st [5]. Under Article 116 (or Article 206 for states), the legislature can authorize expenditure for a part of the financial year pending the completion of the full budgetary process [5]. While recent reforms advancing the budget presentation to February 1st aim to pass the full Appropriation Bill by March 31st to avoid this mechanism, it remains essential during election years when an interim budget is presented [3]. It specifically deals with the expenditure side, ensuring the government can function until the legislature formally votes on the full demands [1].

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 4: Government Budgeting > 4.1 Introduction > p. 147
2. [5] http://budget.up.nic.in/Manual/Final/Chapter/chapter_I-XIX.pdf
3. [2] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 23: Parliament > Stages in Enactment > p. 255
4. [3] Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 23: Parliament > Stages in Enactment > p. 255