What is an interim budget? When will there be a full budget? All FAQs answered

As Finance Minister Nirmala Sitharaman is set to present the interim Budget 2024, prior to this Piyush Goyal had presented an interim budget in 2019. So, what is an interim Budget, and why will it be presented instead of a full budget in 2024?

What is an interim budget?

During an election year, the incumbent government cannot present a full budget owing to which the finance ministers present an interim Budget that covers the government's expenses and revenues for a short period. This is till a new government is elected and takes charge.

What is the difference between an interim budget and a full budget?

The Union Budget is the annual financial statement with the estimated costs and expenses of the government for the following financial year.

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

When is the interim Budget released?

The presentation of an interim budget follows the same schedule as the Union budget would in a regular financial year.

When is the full Budget released?

After the Lok Sabha elections, the new government presents a full budget.

What can be included in the interim Budget?

The interim Budget includes estimates for the government's expenditure, revenue, fiscal deficit, financial performance and projections for just a few months.

What cannot be included in the interim Budget?

No major policy announcements that can burden the next government can be presented in the interim Budget.

What is vote-on-account?

The Parliament passes a vote-on-account through the interim Budget which allows the government to obtain Parliamentary approval for essential government spending such as salaries and ongoing expenses.

Why is interim Budget necessary?

There is no constitutional provision for an interim budget. However, it has become a common practice for outgoing governments ahead of polls.