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 control.

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.

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