Today Finance Minister Nirmala Sitharaman will be presenting an interim budget at 11 am instead of a union budget. Last, an interim budget was presented by Piyush Goyal in 2019.
What is an Interim Budget?
There is no Constitutional Provision to present the Interim Budget. An outgoing government presents the Interim Budget before the Lok Sabha polls during the Budget session. Subsequently, following victory in the Lok Sabha elections, the new government unveils the Union Budget. The interim budget provides financial details for the transitional period. It is crucial to note that no major policies, that can burden the next government, can be announced in an Interim Budget.
When will the Union Budget be presented?
During an election year, the incumbent government cannot present a full budget. This year India will be holding its Lok Sabha Elections following which a new government will take charge. Once that government is formed, the Union Budget will be presented. The comprehensive annual budget functions as a strategic roadmap, delineating the economic trajectory for the entire fiscal year.