On February 1st, India¡¯s Finance Minister Nirmala Sitharaman will present the PM Modi led BJP govt's last union budget before the nation goes for Lok Sabha elections. This will be Sitharaman's sixth budget presentation. However, this time, its not a regular union budget, but an interim one.?
However, this time the budget will be an interim one, instead of a full union budget. But why is that? Read on as we simplify this for you.
A government that is in its final year of office, going through a transition period, or is facing general elections presents an interim budget. The purpose of the interim budget is to provide a short-term, usually few-month framework for managing provisional spending until the next government takes office later in that financial year.
An interim budget is typically presented in the year of a nation's general elections, as opposed to the regular full Union budget that is presented every year. A full union budget, on the other hand, is the one that is declared for the forthcoming entire financial year.
As the Lok Sabha election in India is scheduled for April¨CMay 2024, it will take place during the new financial year 2024¨C25, which starts on April 1, 2024. Therefore, FM Sitharaman will need to present an interim budget on February 1st.
The full union?budget 2024?is likely to be presented in?July, by whoever is the Finance Minister belonging to the formed government post Lok Sabha elections.
On February 1st 2019, India¡¯s then Finance Minister?Piyush Goyal?had presented the previous interim union budget.
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