Interim Budget 2024: What is it and how is it prepared?

The Union Budget is an annual financial statement- declaration of the government's expected receipts and expenditures for the year- as per Article 112 of the Indian Constitution. Every year on February 1, the Government of India presents the Union Budget. This time the government will present the interim budget as it is the election year. The Budget accounts for the government's finances during the fiscal year that runs from April 1 to March 31.

Ahead of the Budget, PM Narendra Modi said that this would be an interim budget. He said, “Ram Ram to all of you for the year 2024. At the end of the first session held in the new Parliament building, this Parliament took a very dignified decision of clearing the Nari Shakti Vandan Adhiniyam.”

Read more: Interim Budget 2024: Date, time and where to watch live?

What are the types of Union Budget?

The Union Budget is divided into two parts: the revenue budget and the capital budget. The former contains items that do not affect the government's assets and obligations while the latter includes goods that do. The revenue budget details the government's revenue and spending. The capital budget comprises the government's capital receipts and payments.

How is the Budget prepared?

The budget-making process begins in August–September, six months ahead of the date of presentation. The budget is prepared by the Union Finance Minister with the help of advisors and bureaucrats. The Finance Minister also invites inputs from business leaders and experts. There are four stages in the entire process: estimates of expenditures and revenues, first estimate of the deficit, narrowing of the deficit, and presentation and approval of the budget.