Interim Budget
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- Context (IE): An Interim budget is presented by the Finance Minister.
- An Interim Budget is a temporary financial plan covering government expenses until a new government takes over at the central level.
- It seeks parliamentary approval for 4 months’ expenses, including salaries and ongoing programs, without tax changes.
- It is presented when there is insufficient time for Parliament to approve various grants and debate changes in taxation before the fiscal year begins.
- It’s widespread in election years, allowing the new government to present a full budget.
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Difference between Interim and Union Budget
Parameter | Interim Budget | Union Budget |
Presented when | The government’s term is ending, or there is a transition in power | Annually, at the beginning of the financial year |
Presented by | The outgoing government | The ruling government of the day |
Focuses on | Essential expenses | New policy initiatives, announcements, and changes in taxation and expenditure |
Covers | limited to the expenditure required to run the government until the new government presents a full budget | All expenditures planned for the entire fiscal year, including developmental projects and ongoing schemes |
Parliamentary approval | Usually, it gets for a few months or until the full budget is presented. | Requires for the entire fiscal year |
Based on | Estimates for the upcoming financial year | Covers the entire financial year, starting from April 1 to March 31 |
Meant for | The smooth functioning of the government until a new government presents a full budget. | Outlining the reigning government’s financial plans for the entire fiscal year. |