Understanding interim budget -Governance Now

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)

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

India will be powerful, not aggressive: Bhaiyyaji

India is poised to emerge as a global power but will remain rooted in its civilisational ethos of non-aggression and harmony, former RSS General Secretary Suresh `Bhaiyyaji` Joshi has said. He was speaking at the launch of “Rashtrabhav,” a book by Ravindra Sathe

AI: Code, Control, Conquer

India today stands at a critical juncture in the area of artificial intelligence. While the country is among the fastest adopters of AI in the world, it remains heavily reliant on technologies developed elsewhere. This paradox, experts warn, cannot persist if India seeks technological sovereignty.

RBI pauses to assess inflation risks, policy transmission

The Reserve Bank of India (RBI) has begun the new fiscal year with a calibrated pause, keeping the repo rate unchanged at 5.25 per cent in its April Monetary Policy Committee (MPC) meeting. The decision, taken unanimously, reflects a shift from aggressive policy action to cautious observation after a signi

New pathways for tourism growth

Traditionally, India’s tourism policy has been based on three main components: the number of visitors, building tourist attractions and providing facilities for tourists. Due to the increase in climate-related issues and environmental destruction that occurred over previous years, policymakers have b

Is the US a superpower anymore?

On April 8, hours after warning that “a whole civilisation will die tonight,” US president Donald Trump, exhibiting his unique style of retreating from high-voltage brinkmanship, announced that he agreed to a two-week ceasefire with Iran. The weekend talks in Islamabad have failed and the futur

Machines communicate, humans connect

There is a moment every event professional knows—the kind that arrives without warning, usually an hour before the curtain rises. Months of meticulous planning are in place. And then comes the call: “We’ll also need a projector. For the slides.” No email