Understanding interim budget

PM Modi led NDA government is gearing up to present this year's budget as elections are round the corner

GN Bureau | January 21, 2019


#Arun Jaitley   #union budget   #interim budget   #central government   #parliment   #Narendra Modi   #India budget   #Budget 2019  
File photo (Arun Kumar)
File photo (Arun Kumar)

Narendra Modi-led NDA government is due to present its last budget on February 1, before the 2019 general elections. Finance minister Arun Jaitley, who is currently in US for medical treatment, is likely to present the budget. This will be an interim budget of the NDA government.

Also read: Breaking down some key terms used in budget

But what exactly is an interim budget?
  • An interim budget is presented when the incumbent government is going through an election in the near future. In such a case, propriety demands that the task of framing the full budget be left to the incoming government
  • Through the interim budget, parliament passes a vote-on-account that allows the government to meet the expenses of the administration until the new parliament considers and passes the budget for the whole year.
Interim budget
 
1.       It is only for a period of two to four months until the new government is formed after elections.
2.       It does not contain tax reforms and introduction of new policies and schemes i.e., no financial bill.
3.       The government would still present the complete set of accounts including for both expenditures and receipts.
4.       No heavy discussions are carried out in the parliament during the interim budget.
 
Union budget
 
1.       It is for 12 months i.e., a full financial year.
2.       A full budget includes major policy/legal decisions that would affect the finances/expenditures of the government.
3.       The union budget, which comes with a Finance Act, contains several amendments to various legislations.
4.       The Lok Sabha and Rajya Sabha pass the budget only after discussion and voting on demand for grants.
 
  • The constitution provides for a vote on account, and that says that government can approach parliament to sanction expenditures for a part of the year.
  • The previous 12 interim budgets, since independence, have refrained from altering the financial bill.
  • Interim budget is considered to be crucial for the incumbent government as it is their last chance to attract the voters and make a fervent appeal to the electorate.  

 

Comments

 

Other News

Reopening: Old guidelines extended to November

As the Covid-19 situation continues to improve in India, the ministry of home affairs (MHA) has decided to continue the Guidelines for Reopening, which have already done away with nearly all of Lockdown restrictions in areas outside the containment zones. The MHA issued an order Monday and e

India records lowest new cases in three months

After a scare in September with the number of daily fresh cases inching above 90,000, India seems to have gone down the peak, with several key parameters giving cause for relief just in time for the annual festive season. The new confirmed cases in the 24 hours to Tuesday morning have fallen below 36,500 (

India’s case fatality rate lowest since Janata curfew

The annual festive season has brought good news for India: the country’s case fatality ratio has gone down to touch 1.5 percent, and the number of deaths per day has dipped below 500 in the 24 hours to Monday morning – bringing the situation closer to the number before the lockdown was imposed

“Script is the real hero”

Basking in the success of the new web series, ‘Scam 1992: The Harshad  Mehta Story ’,on SonyLIV, the OTT platform from Sony stable where the lead actors are new faces, NP Singh, MD and CEO of Sony Pictures Networks, has said that the script is the new hero. He credited the s

India’s active cases below 10% of total cases for three days

India’s trend of steadily decreasing active cases continues unabated. The number of Active Cases has remained below 10% of the total cases for the last three days, suggesting only one in 10 cases is active Covid-19 patient. The active cases comprise merely 9.29% of the total positive c

Cabinet clears bonus for non-gazetted employees

The union cabinet chaired by prime minister Narendra Modi on Wednesday gave its approval to pay productivity linked bonus (PLB) for 2019-20 to 16.97 lakh non-gazetted employees of commercial establishments like Railways, Posts, Defence, EPFO, and ESIC, with a financial implication of Rs.2,791 crore.

India Police Virtual Summit and Awards 2020

Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter