Budget 2024: Principal distinctions between the regular and interim budgets

On February 1, 2024, Union Finance Minister Nirmala Sitharaman is scheduled to deliver her sixth budget. However, because of the impending Lok Sabha elections in April and May, she will only be delivering an interim budget rather than a complete one. In election years, it is normal for the current administration to offer a temporary budget to cover necessary spending until a new government takes office.

It is anticipated that the interim budget will be presented at a joint session of Parliament. After the elections, when the new administration is in place, the whole budget will be revealed. Parliament usually adopts a vote-on-account as part of the interim budget to handle important costs including pay for central government employees and financing for ongoing government projects. Normally, a vote-on-account is good for two months, however it may be extended if needed.

A complete budget and an interim budget vary in many important ways. The interim budget covers government spending during the transitional period until a new administration takes office, acting as a temporary financial plan. A complete budget, on the other hand, is a thorough financial plan that covers every facet of government revenue, spending, allocation, and policy declarations. The interim budget offers financial information for the transitional period, while the complete budget acts as a guide for the country’s economic direction for the duration of a fiscal year.

Major announcements will not be made in the interim budget on February 1, according to Finance Minister Sitharaman. Following the British custom of a vote on account during an election year, she said that the administration’s spending will be paid for by a vote-on-account until a new government is in place. Important pronouncements, she said, could have to wait until after the new administration takes office.