In just about a week, India¡¯s Finance Minister Nirmala Sitharaman is set to present the Interim?Budget on February 1st. Unlike last few years, this will be a different kind of Union Budget, i.e. an interim one.
But what exactly is an interim budget? Are there any other types of Union Budgets in India? Lets find out.
Unlike a usual full Union Budget that is presented on most years, an interim budget tends to happen in the years wherein a country is going for general elections.?
The Interim Budget serves as a temporary framework for managing provisional expenditures over a short duration, usually spanning a few months, until a new government takes office at the central level and eventually presents a full union budget.
When the government's anticipated revenue for the fiscal year matches its actual expenditures, the budget is said to be a balanced one. Total budget receipts minus total budget expenditures applies to this budget. A balanced budget, for example, would have ?5 lakh crores in budget receipts and ?5 lakh crores in budget expenditures.
When projected government spending for the fiscal year exceeds projected revenue, a deficit budget is created. If expenses continue to exceed revenue over time, the budget is considered to be in deficit. Usually, borrowing from the general public or taking money out of the reserve surplus that has already been accrued is used to cover the deficit.?
Since a deficit budget raises debt or reduces the government's reserve funds, it is a liability of the government. One useful tool for funding planned improvements in developing nations and bolstering stability in developed nations is a deficit budget.?
Also Read:?FAQs On Upcoming Interim?Budget 2024
A surplus budget is one in which the government's anticipated income or revenue exceeds its anticipated outlays. The government may have surplus budgets, or extra money to spare, if its long-term financial planning is sound and efficient. A surplus budget is a tool that the government can use to control inflation when it is out of control by lowering aggregate demand.?
The method of planning and creating the budget from scratch, or "zero bases," is known as zero-based budgeting (ZBB). This kind of budget is a methodical approach to cost control that considers how best to divide income between savings and variable, fixed, and other expenses. For the successful planning and launch of its missions ISRO too is believed to opt for zero based budgeting method. Click here to know more.
Examining a government's or other organization's budget to determine how much it advances gender equality is known as gender budgeting. The purpose of this tool is to monitor and identify the resources allocated to women, men, and gender-related issues. It also evaluates the effects of these allocations on gender equality.
India's FM Nirmala Sitharaman will present the interim budget on February 1st 2024, at 11 am. Then post the Lok Sabha election's results, which government comes into power, it will?present the?full Union Budget 2024 in July 2024.
Also Read:?Meet RK Shanmukham Chetty, The Man Who Presented India's First Budget
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