How is Interim Budget different from Annual Budget?
By iastoppers.com
The interim Budget, considered a 'stop-gap' measure, was presented on February 1 by Finance Minister, focusing on government expenditure for the first four months of the fiscal year
The interim budget is a provisional financial plan presented in an election year when a full budget cannot be presented due to potential changes in the government after polls
Article 116 of the Constitution allows the Lower House to pass a vote on account, authorizing the withdrawal of funds from the Consolidated Fund of India for part of a financial year (2 to 4 months)
Outgoing governments often prefer presenting an interim budget instead of a simple vote on account, allowing the Finance Minister to provide an overview of the current state of the economy, fiscal status, and planned expenditures
Centre is restricted from announcing major schemes that could influence voters or introducing an Economic Survey, but it allows for the revision of tax rates
The interim Budget aims to meet government expenditure until a new government takes over, and major announcements are reserved for the subsequent full Budget in July 2024
A simple vote on account is valid for two months to four months, while an interim budget is a more elaborate presentation on the state of the economy and remains valid for the entire year
Both the Union Budget and interim budget are presented to both Houses, debated in the Lok Sabha, and require approval through voting before being sent for Presidential approval
Failure to pass the Union Budget by the Lok Sabha could lead to the resignation of the Prime Minister and his Cabinet, emphasizing the significance of parliamentary approval for budgetary matters