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

Green banking: an emerging way forward

Green Banking is an initiative taken by the banks to promote environment-friendly practices and reduce carbon footprint of their activities. Green financing (a part of ‘Green Banking’) is a broad term that can refer to a financial investment flowing into sustainable development projects and ini

GST revenue in May clocks 12% y-o-y growth

The gross Good & Services Tax (GST) revenue collected in the month of May, 2023 is ₹1,57,090 crore of which CGST is ₹28,411 crore, SGST is ₹35,828 crore, IGST is ₹81,363 crore (including ₹41,772 crore collected on import of goods) and cess is ₹11,489 crore (including ₹1,057 crore collecte

Need local solutions to climate change: P Velrasu of BMC

Climate change rising temperature and sea levels are posing new risks for coastal cities. With population growth rate of 1%- 2% in India every year, Mumbai too is growing and is population will double from 20 million to 40 million in the coming years. The city is also at the risk of rising sea level. It ne

Civil Services 2022 Top 20 felicitated

Union Minister of State (Independent Charge) for Science and Technology, MoS PMO, Department of Atomic Energy and Department of Space and MoS Personnel, Public Grievances and Pensions, Dr Jitendra Singh on Tuesday interacted with and felicitated the first 20 All India Toppers of IAS/ Civil Services Exam 20

Boost to offshore wind energy projects

In a major decision, the Government has decided to grant waiver of ISTS charges to Off-Shore Wind Projects and extend the waiver to Green Hydrogen/Green Ammonia. This decision has been taken to facilitate wider execution of offshore wind energy initiatives, to promote the expansion of Green Hydrogen / Gree

Duty of stakeholders to provide cost effective, alternate energy fuels: Gadkari

Urging use of alternative and cost effective fuels to reduce pollution caused by vehicles, union road transport and highways minister Nitin Gadkari on Thursday said finding cost-effective fuels is the need of the hour and underlined that use of fuels like bio-CNG and green hydrogen help in protecting the e

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter