Interim Budget 2024: India’s Finance Minister Nirmala Sitharaman is going to present the interim budget for the financial year 2024 on Thursday, February 1. The current budget will be unveiled in a joint session of Parliament whereas the complete financial budget will be proposed after the general elections, which are scheduled to take place by April and May of this year.
Watch this space for the Union Interim Budget 2024 updates!
— Ministry of Finance (@FinMinIndia) January 31, 2024
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This article will explain to you about Interim Budget, its meaning, types and other important details about the mid-year budget plan.
What is Interim Budget?
The Interim Budget, also referred to as vote-on-account is a short-term financial plan to fund central government spending until elections are held and a new central government assumes power. This budget by the outgoing government is to ensure that essential government functions and services continue uninterrupted until the next administration takes office.
Other than the regular budget, the Interim Budget contains detailed documentation of every expense to be incurred and every rupee to be earned through taxes in the coming few months until the new government comes to power.
Features of Interim Budget
- It enables the government to cover its costs in the brief time frame before the elections.
- Unlike a comprehensive budget, which is passed only after conversations, a vote on account is passed as a convention without any discussion.
- It functions as a grant-in-advance to enable the government to continue operating effectively until the Finance Bill and the Appropriations Bill are passed and the demands for funds are voted on.
- Under multiple grant requests, the total amount of this grant is one-sixth of the expected expenditure for the entire year.
List of Finance Ministers of India (1947 to 2024)
What is the importance of an Interim Budget?
An Interim Budget is different to a Union Budget. The ruling government at the end of its tenure, presents an Interim Budget for three to four months to keep the country running unhampered.
In the Interim Budget, the ruling government tables estimate its expenditure, revenue, fiscal deficit financial performance and projections for the upcoming financial year.
The Interim budget avoids making any significant policy pronouncements that would financially strain the incoming administration when it presents the Union Budget in its entirety. The governing administration is prohibited from including any significant programmes in the interim budget by the Election Commission's Code of Conduct because they may sway voters. The Economic Survey is not presented with the Interim Budget by the ruling administration.
Nirmala Sitharaman, the finance minister, has made it clear that no major announcements will be made during the upcoming budget session. However, industry leaders haven't ruled out the prospect of significant policy announcements in her interim budget that will support tax reduction, increase funding for infrastructure development, and promote manufacturing.
In conclusion, the Interim budget is approved by the parliament to allow the government to spend money until the end of March. It helps the government spend until the new government passes the full budget, especially during elections, usually for four months.
Important Days and Dates 2024: National and International Days
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