Context (IE):An Interim budgetis 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.
A Vote-on-account, a part of the Interim Budget, usually lasts for two months and outlines provisional government expenses (1/6th of the total estimation) until a new government is formed.
The Vote on account can be approved within the framework of Interim budget.
R K Shanmugam Chetty presented Independent India’s first vote on account in 1948.
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.
