Interim Budget vs Union Budget
Interim Budget vs Union Budget: The present discourse aims to explicate the variances between the two categories of budgets that are tabled in the Indian Parliament.
The interim budget for 2024 was presented on February 1st by the central government, which is led by the BJP. Before the general elections, the government presents the interim budget, a temporary financial plan. The interim budget is presented to the Lok Sabha before its annual elections, which typically occur in the second quarter.
The elections for the Lok Sabha in 2024 are scheduled for April and May. Therefore, the interim budget will be unveiled by current Finance Minister Nirmala Sitharaman on the first day of the second month. The interim budget is optional, in contrast to the entire union budget.
The differences between the full union budget and the interim budget will be discussed in this article. To understand the difference between the interim budget and the entire union budget, continue reading.
Interim Budget vs Union Budget
The following are the main distinctions between a union budget and an interim budget:
| Interim Budget | Union Budget |
| Presented at the end of a government term or during a change of power. | Typically, this is presented at the start of the financial year. |
| This is intended to keep things running smoothly until a new government offers a complete budget. | A comprehensive budget detailing the financial plans for the entire financial year of the current government. |
| Usually stays away from significant policy changes or new initiatives. Concentrates on basics. | Includes announcements, new policy initiatives, and adjustments to spending and taxation. |
| Usually restricted to the costs necessary to keep the government operating until the next one provides a complete budget. | Includes all scheduled spending for the whole financial year, including ongoing projects and development projects. |
| Usually gets parliamentary approval for a few months or until the next government presents the entire budget. | Needs to be approved by parliament for the entire financial year. |
| Based on estimates for the following financial year. | Includes all of the financial year, which runs from April 1 to March 31. |
| Provided by the outgoing government. | Presented by the current ruling government. |
| Usually a more short and direct presentation. | Thorough and in-depth presentation that addresses every facet of the budget. |
| Detailed presentation covering all aspects of the budget. | Focuses on defining the budget’s goals and priorities for the full financial year. |
In summary, the government presents an interim budget as a stopgap measure before the quinquennial Lok Sabha elections, which signal the end of the current government’s term. Until a new government is formed, the interim budget acts as a stopgap to keep the government running smoothly.
On the other hand, the current government—which was formed following the general elections—presents the union budget. The Union budget is a detailed financial plan that lists all of the government’s anticipated receipts and outlays for the next financial year.
