Finance Minister Nirmala Sitharaman is set to unveil the Interim Budget 2024 in the Parliament today at 11 am, marking a departure from previous years. This will be her sixth budgetary address in a row. With this, she will be equalling former Prime Minister Morarji Desai’s record. The last interim budget was presented by Piyush Goyal in 2019.
What is the need of an Interim Budget?
The Constitution does not contain any provision for the presentation of an Interim Budget. Typically, an outgoing government presents the Interim Budget before the Lok Sabha polls during the Budget session. The Interim Budget, also known as a vote-on-account, serves as a temporary financial blueprint to support the central government’s expenditures until elections are conducted and a new central government comes into office. Issued by the outgoing government, this budget is designed to guarantee the seamless continuation of vital government functions and services until the next administration assumes responsibility. The Interim Budget offers financial details for the transitional period. It is important to highlight that no major policies, that can burden the next government, can be announced in an Interim Budget.
When will the Union Budget be presented by the next government?
In an election year, the incumbent government cannot present a full budget. With Lok Sabha Elections scheduled in India this year, a new government will be established afterward. Following the formation of the new government, the Union Budget will be unveiled. This comprehensive annual budget will serve as a strategic roadmap, outlining the economic path for the entire fiscal year.