Finance Minister Nirmala Sitharaman is preparing to submit the interim Budget 2024, as is customary during election years when the current administration is unable to present a complete budget. Let’s look at all the commonly asked questions (FAQs) concerning the interim Budget.
What is an interim Budget?
The interim Budget covers government spending and income for a limited time in an election year until a new administration is formed. It describes the government’s expenditure and income proposals until the incoming administration submits a comprehensive budget. The Union Budget, on the other hand, is an annual financial document that covers the government’s expected spending and expenses for the next fiscal year.Â
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What items are included in the interim Budget?
The interim Budget contains forecasts for government spending, income, fiscal deficit, and financial performance for a few months, but it does not include important policy pronouncements.
What is the duration covered by an interim Budget?
An interim budget often addresses the urgent budgetary demands and allocations for the next few months until the new administration can produce a comprehensive budget for the fiscal year.
Can substantial policy changes be made in the interim budget?
Interim budgets are often concerned with maintaining continuity rather than introducing big policy changes. However, they may contain certain policy changes and new projects if there is an urgent need or if they are consistent with the current government’s aims.
Who submits the interim budget?
The interim budget is normally given by the current government’s finance minister before the end of their tenure.
What’s the difference between an interim and a regular budget?
An interim budget is a shorter-term financial statement that permits the government to run normally until a new administration presents a comprehensive budget for the whole fiscal year.
What happens to the interim budget after the new administration takes office?
The incoming administration can either stick with the allocations and suggestions indicated in the interim budget, or make changes depending on its objectives and policies. The interim budget acts as a guideline until the final budget is submitted.
This is Sitharaman’s sixth budget under Prime Minister Narendra Modi’s administration. The budget for 2023-24 requested a total spending of Rs 45,03,097 crore, with the biggest allocation going to sectors such as military, road transport and roads, railways, health and family welfare, and jal shakti.
