Subscribe to never miss an important update!
- 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.
Difference between Interim and Union Budget
|The government’s term is ending, or there is a transition in power
|Annually, at the beginning of the financial year
|The outgoing government
|The ruling government of the day
|New policy initiatives, announcements, and changes in taxation and expenditure
|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
|Usually, it gets for a few months or until the full budget is presented.
|Requires for the entire fiscal year
|Estimates for the upcoming financial year
|Covers the entire financial year, starting from April 1 to March 31
|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.