New Delhi: As the Lok Sabha elections are due in 2024, Finance Minister Nirmala Sitharaman will present an interim budget instead of a regular budget on 1 February. The interim budget, also known as ‘Vote on Account’, is a temporary financial plan that covers the government’s expenses and revenues for a short period until a new government is formed after the polls. The interim budget will be presented in the new Parliament building.
The interim budget is different from a regular budget in several ways. A regular budget, also known as a union budget or a general budget, is an annual financial statement that outlines the government’s financial plans for the entire fiscal year, starting from 1 April to 31 March. The regular budget includes all aspects of government finances, such as revenues, expenditures, allocations, policy initiatives, taxation, and borrowing. The regular budget reflects the government’s economic vision and priorities for the year.
The interim budget, on the other hand, is not for the whole fiscal year, but only for a few months or days. The interim budget is presented by the outgoing government when its term is ending or there is a transition in power. The interim budget does not include any major policy announcements or new schemes that can burden the next government. The interim budget focuses on essential expenses, such as salaries, pensions, subsidies, and interest payments. The interim budget is smaller and simpler than the regular budget and aims to maintain the continuity and stability of government operations.
The interim budget is based on Article 116 of the Constitution, which allows the government to seek approval from the Parliament for necessary expenditures for a part of the financial year. The Parliament passes a vote-on-account through the interim budget, which authorizes the government to withdraw money from the consolidated fund of India to meet the expenses. The interim budget remains in force until the new government presents its full budget.
The interim budget is not mandatory, but it has become a convention for the governments to present it before the general elections. The interim budget is important because it ensures that the government does not face any financial crunch during the election period and that public services are not disrupted. The interim budget also gives an overview of the government’s financial performance and projections for the upcoming fiscal year. The interim budget is sometimes called a mini-budget because it is a scaled-down version of the regular budget.
