Image Source : PTI (FILE) Union Finance Minister Nirmala Sitharaman
Union Finance Minister Nirmala Sitharaman is set to present her sixth budget on February 1, 2024. However, instead of a full budget, she will be presenting an interim budget due to the upcoming Lok Sabha elections scheduled for April-May. This is a customary practice in an election year, where the incumbent government presents an interim budget to cover essential expenditures until a new government assumes office.
The presentation of the interim budget is expected to take place in a joint session of Parliament. The full budget will be presented once the new government is in place after the elections. As part of the interim budget, Parliament typically passes a vote-on-account to address crucial expenses such as central government staff salaries and the funding of ongoing government projects. A vote-on-account is usually valid for two months but can be extended if necessary.
There are key differences between an interim budget and a full budget. The interim budget serves as a temporary financial plan, covering government expenditures during the transitional period until a new government takes charge. In contrast, a full budget is a comprehensive financial plan that includes all aspects of government earnings, expenditures, allocations, and policy announcements. While a full budget serves as a roadmap for the nation’s economic course for an entire fiscal year, the interim budget provides financial details for the transitional period.
Finance Minister Sitharaman has indicated that the interim budget on February 1 will not include major announcements. She mentioned that it would be a vote-on-account to meet the government’s expenses until a new government is in place, following the British tradition of a vote on account during an election year. She stated that significant announcements might have to wait until after the new government assumes office.
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