Budget 2024: What is interim budget?

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Finance Minister Nirmala Sitharaman is prepared to present the interim budget 2024 on February 1 at 11 am, outlining the temporary financial plan until the new government assumes charge.

This marks her sixth budget presentation, including five annual budgets and one interim budget, placing her alongside former Prime Minister Morarji Desai in India's historical records.

The comprehensive budget for the fiscal year 2024-2025 is slated for presentation in July, irrespective of whether the incoming government is new or a re-elected one. Concurrently, this budget serves as the conclusive financial plan for the second term of the Narendra Modi government.

Officials involved in formulating the interim budget 2024 are currently in a 'lock-in' period, adhering to stringent confidentiality measures for the final document. They will emerge from this period only after the official presentation on February 1, which commenced with the traditional 'halwa' ceremony on January 24.

The Interim Budget 2024-2025 is scheduled to be tabled by FM Nirmala Sitharaman on February 1, beginning at 11 am.

What is interim budget?

Understanding the concept of an interim budget is crucial in this context. It functions as a short-term financial plan to fund central government spending until elections are conducted, and a new government assumes power. The outgoing government formulates an interim budget to ensure the uninterrupted continuation of essential government functions and services until the next administration takes office.

Also read: Budget 2024: Indian Medical Association seeks investment in public sector hospitals

To cover critical expenses such as ongoing government activities and salaries for central government personnel, the Parliament approves a vote-on-account. While the duration of a vote-on-account can be extended if necessary, its typical duration is two months. The interim budget remains effective until March 31, 2024, beyond which the spending power of the current government is constrained.

While major tax proposals may not be introduced, the ruling government might incorporate a few populist measures to garner support from the electorate.

However, the Interim Budget does not involve significant policy announcements that could impose financial burdens on the next government responsible for presenting the full Union Budget.

In accordance with the Election Commission's Code of Conduct, the ruling government is prohibited from introducing major schemes in the Interim Budget, as such actions could unduly influence voters. Additionally, the government in power refrains from presenting the Economic Survey alongside the Interim Budget.

Willing to discuss every issue: Govt ahead of interim Budget 2024

Meanwhile, the government on Tuesday told floor leaders of various parties that it was ready to discuss every issue in the upcoming interim budget 2024 session of Parliament.

Emerging from the customary all-party meeting convened by the government on the eve of the interim budget 2024 session, Parliamentary Affairs Minister Pralhad Joshi described the interaction as "very cordial" and said the government was ready to discuss every issue during the brief session.

The session will be the last one of the present Lok Sabha before parliamentary elections are announced.

Defence Minister and Deputy Leader in the Lok Sabha, Rajnath Singh, Parliamentary Affairs Minister Joshi and his deputy Arjun Ram Meghwal represented the government at the meet.

Congress' K Suresh, TMC's Sudip Bandopadhyay, DMK's T R Baalu, Shiv Sena's Rahul Shewale, Samajwadi Party's S T Hasan, JD(U)'s Ram Nath Thakur and TDP's Jayadev Galla were among the leaders present at the meeting at the Parliament House complex.

Congress MP Pramod Tiwari, who represented the Leader of the Opposition in Rajya Sabha Mallikarjun Kharge, said he raised the issue of the "violent attack" on the Bharat Jodo Yatra led by Rahul Gandhi in Assam and the state government's curbs on it.

An "unwritten dictatorship" prevails in the country, he said and accused the central government of misusing probe agencies such as the CBI and the ED to target opposition leaders such as Jharkhand Chief Minister Hemant Soren and RJD supremo Lalu Prasad.

Tiwari said he raised these issues after consulting opposition parties.

It is a customary practice ahead of every session to convene a meeting as leaders of different parties highlight the issues they want to raise in Parliament, and the government offers them a glimpse into its agenda and seeks their cooperation.

It will be a short session this time, between January 31 and February 9, with Finance Minister Nirmala Sitharaman set to table an interim budget ahead of the Lok Sabha polls. The new government will present the full-fledged budget.

The session will begin with President Droupadi Murmu's address to a joint sitting of both Houses. (With inputs from PTI)