Union Finance Minister Nirmala Sitharaman is all set to unveil an interim budget for fiscal 2024-25 on February 1 (Thursday) in the Parliament. This will be the last major economic document presented by the government before the Lok Sabha elections.
A brief budget session of Parliament, the last of the 17th Lok Sabha, would be held between January 31 and February 9.
Usually presented in an election year, an interim budget is the budget for a transition period until the next government is formed. It seeks to provide a short-term financial plan to fund essential government operations, ongoing schemes, and urgent requirements until a new government is formed.
Like a normal budget, the finance minister will present estimates, expenditures, fiscal deficit, and financial performance for the whole year. The interim budget contains the expenses and income of the previous year and a listing of the proposed basic expenses till the general elections.
Limitations of interim budget
An interim budget will not have new policies or schemes that have long-term financial implications, unlike a full-year budget. The Election Commission's Code of Conduct stipulates that the government should desist from announcing major schemes in the interim budget that could possibly influence voters.
Unlike the usual budget, the interim budget is not preceded by the economic survey. There will not be a detailed discussion on the interim budget in the Parliament, instead, it is proposed for a "vote-on-account" for approval.
When will the full budget be presented?
After the general elections, the new government will be presenting the final Budget for 2024-25, which may include major policy initiatives, and tax proposals to propel the country towards a $5 trillion economy, and also to make the country the world's third-largest economy.
Nirmala Sitharaman had said: “The budget that the government presents would just be to meet with the expenditure of the government till a new government comes to play. So no spectacular announcements are made that time. You may have to wait till after the new government comes in and the next full budget will July 2024. So things have to wait till then.”
