This year, the BJP-led central government will release the interim budget on February 1, 2024. The interim budget is a temporary financial plan presented by the government before the general elections. The Lok Sabha elections usually take place in the second quarter of the year, and the interim budget is presented before them.
The 2024 Lok Sabha elections are set to take place between April and May. Hence, current Finance Minister Nirmala Sitharaman will present the stopgap arrangement on the first day of the second month. Unlike the full union budget, the interim budget is not mandatory.
This article will cover the differences between the interim and full union budgets. Read on to clear up any confusion between the interim budget vs full union budget.
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Differences between Interim Budget and Full Union Budget
Here are the prominent differences between an interim budget and a union budget:
| Interim Budget | Union Budget |
| Presented when the government's term is ending or there is a transition in power. | Presented annually, usually at the beginning of the financial year. |
| This is meant for the smooth functioning of the government until a new government presents a full budget. | A comprehensive budget outlining the reigning government's financial plans for the entire fiscal year. |
| Typically avoids major policy announcements or new schemes. Focuses on essential expenses. | Includes new policy initiatives, announcements, and changes in taxation and expenditure. |
| Generally limited to the expenditure required to run the government until the new government presents a full budget. | Covers all expenditures planned for the entire fiscal year, including developmental projects and ongoing schemes. |
| Usually gets parliamentary approval for a few months or until the full budget is presented by the new government. | Requires parliamentary approval for the entire fiscal year. |
| Based on estimates for the upcoming financial year. | Covers the entire financial year, starting from April 1 to March 31. |
| Presented by the outgoing government. | Presented by the ruling government of the day. |
| Tends to be a shorter and more straightforward presentation. | Comprehensive and detailed presentation covering all aspects of the budget. |
| Primarily focused on maintaining the continuity of government operations. | Focuses on setting the financial priorities and goals for the entire fiscal year. |
To sum up, an interim budget is a stopgap arrangement presented by the government before the quinquennial Lok Sabha elections, which marks the end of the current government's term. The interim budget serves as a temporary measure to ensure the smooth functioning of the government until a new government is formed.
On the other hand, the union budget is presented by the current government, which has formed after winning the majority in the general elections. The Union budget is a comprehensive financial plan that outlines the government's revenue and expenditure for the upcoming fiscal year.
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