On February 1 at 11 am, Union Finance Minister Nirmala Sitharaman is scheduled to present the Interim Budget 2024 in Parliament. The Interim Budget, presented by the outgoing government just before the Lok Sabha polls, offers a glimpse into the key decisions made by the Centre. This budget sets the groundwork for the comprehensive budget that will be presented by the new government post the elections. It is expected that FM Sitharaman’s Interim Budget will highlight the government’s achievements since 2014 and provide insight on the Amrit Kaal of 2047.
The Interim Budget plays a crucial role in outlining the government’s expected income and expenses until the new government is formed. In contrast, the comprehensive Budget covers various aspects of government finances, policy announcements, and economic path for the entire fiscal year. The presentation of an interim budget follows the same schedule as the Union budget in a regular financial year.
In the last Interim Budget, former FM Piyush Goyal announced several crucial changes, including no income tax for earnings up to Rs 5 lakh, an increase in standard tax deduction for salaried individuals, and a package of Rs 6,000 per annum for farmers with less than 2 hectares of land, among other announcements.
However, the Interim Budget cannot include major policy announcements that may burden the next government. As per the Code of Conduct of the Election Commission of India, the Interim Budget cannot include significant schemes that could influence voters. Additionally, the ruling government is not permitted to present the Economic Survey alongside the interim Budget.
Following the presentation of the Interim Budget, the Parliament passes a vote-on-account, allowing the government to obtain Parliamentary approval for essential government spending. This provision is valid for up to two months but can be extended if needed.
In summary, the Interim Budget serves as a crucial financial roadmap during the transitional period before the formation of a new government. It provides essential insight into the government’s planned expenses and income until a new government takes charge.
News Highlight :
– The Union Finance Minister Nirmala Sitharaman is set to present the Interim Budget 2024 in Parliament on February 1 at 11 am.
– The Interim Budget is presented by the outgoing government before the Lok Sabha polls, while the comprehensive Budget is presented by the new government after winning the elections.
– The Interim Budget is expected to focus on the government’s achievements and look ahead to the future.
– It mainly covers the government’s income and expenses until the formation of the new government, unlike the comprehensive Budget which outlines the country’s economic path for the entire fiscal year.
– It has become crucial for ruling governments as a strategic tool for general elections, allowing them to present their economic vision and outlook for re-election.
– Major policy announcements that could burden the next government cannot be included in the Interim Budget, as it may sway the voters.
– After the Interim Budget, the Parliament passes a vote-on-account which provides an allocation for essential government spending.
– The vote-on-account focuses solely on expenditure and can be approved by Parliament without the need for a formal discussion.
– This year, the NDA government presented ‘The Indian Economy: A Review’ before the Interim Budget, outlining the state of the Indian economy and its outlook for the coming years.
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