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Union Budget 2019-20: Full Budget vs Interim Budget

The Union Government led by Prime Minister Narendra Modi would be presenting Interim Budget 2019-20 on February 1, 2019, the last budget of the NDA government before the 2019 Lok Sabha Elections.

Feb 1, 2019 09:37 IST
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The Union Government led by Prime Minister Narendra Modi would be presenting Interim Budget 2019-20 on February 1, 2019, the last budget of the NDA government before the 2019 Lok Sabha Elections.

The budget presentation is likely to be done by interim Finance Minister Piyush Goyal in the Lok Sabha. The Railway Minister was given the additional charge of the Finance Ministry, as Arun Jaitley is currently undergoing treatment.

The Interim Budget is also known as a vote-on-account or approval, which the government seeks from the parliament for essential spending for a limited period, the first four months of the fiscal year in which the elections are scheduled. The full-fledged budget is then presented by the new government.

Key difference between Interim and Full Budget

Interim Budget

Full Budget

It is presented by the outgoing government during the last year of its tenure before elections.

It is presented by the new government during the first term of its tenure after it takes charge.

It is also known as vote on account or approval, which the government seeks from the parliament for essential spending for a limited period.

The annual budget is presented in two parts. It includes the detailed structure of income and future ways to raise funds.  

It is generally meant for the first 2-4 months of the fiscal year in which the elections are scheduled.

It is prepared for the entire fiscal year.

It is the summary of the income and expenses made in the previous year and the proposed future expenses likely to be made in the next few months until the new government takes charge.

It includes a detailed structure of income and expenses prepared by the government in previous year.

It does not include the proposal on the income part of the budget through collection of taxes.

It also includes announcement of future ways to raise funds from taxes and how to spend them on welfare measures in different segments.

The vote-on-account is treated as a formal matter and passed by Lok Sabha without discussion.

The full budget is passed by the Lok Sabha only after proper discussions and voting on demand for grants.

Background

In 2014, the then Finance Minister P Chidambaram had presented the vote-on-account on behalf of the UPA Government. Arun Jaitley had presented the full budget of the year in July after Narendra Modi-led NDA government had emerged victorious in the 2014 Lok Sabha Elections.

Arun Jaitley has made the Union Budget presentation five times previously.

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