Budget vs Interim Budget: Know difference

Here's how the interim budget is different from the regular budget.

Finance Minister Nirmala Sitharaman is set to unveil the interim budget for 2024-25 on February 1.

Nirmala Sitharaman will unveil an interim budget rather than a full budget because the Lok Sabha elections are scheduled to take place in a few months.

The interim budget will be presented in a joint Parliament session, while the full budget will be presented after the April-May general elections.

An interim budget is a short-term financial plan that covers government expenses until a new government takes charge after elections, ensuring smooth operations and key services.

The current government's spending power is restricted to the Union Budget's validity until 31 March, and requires Parliament approval for expenses between 1 March and the new government's establishment.

An interim budget allocates funds for ongoing programs, pressing needs, and government activities without introducing new policies or programs that could significantly impact the financial situation.

A full-year budget, which maps out the country’s economic course for a full fiscal year, is a strategic tool. In contrast, the interim budget offers financial information for the temporal period.

The Union budget highlights the government’s commitment to numerous initiatives and changes, which frequently affect investor mood. 

A full budget will be presented by the new government in July this year, in anticipation of the Lok Sabha elections in April or May 2024.