With the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) back in power for its third term, Finance Minister Nirmala Sitharaman will present the full Union Budget for 2024-2025 on July 23.
The Budget Session will start on July 22 and Nirmala Sithraman will table the budget a day later. This highly anticipated event will reveal the complete financial plan and allocations for the current financial year with an insight into the government’s priorities and strategies for economic growth and development.
An interim budget to cover the essential government expenses was presented on February 1, 2024, just before the Lok Sabha elections.
Here’s how the Interim Budget differs from a Full or Annual Budget:
Interim Budget
The Interim Budget is presented by a government in an election year to seek the Parliament’s approval for funds required for the transition period (April-July). Also known as a vote on account, this budget is presented to ensure the continuity of government expenditures until a new government takes office.
This is a constitutional requirement. The outgoing government cannot make major financial decisions or commitments for the incoming government.
Annual Budget
The annual Budget is presented by the new government after the elections and includes the annual financial statement for the entire financial year. It is tabled in both Houses of Parliament, debated and passed. The Annual Budget includes tax changes, new schemes and allocations for various departments for the entire year.
Since Ms Sitharaman has been reappointed as the Finance Minister, she will present the full budget in July 2024.
The Interim Budget includes the current state of the economy, fiscal status and the government’s planned and non-planned expenditures and receipts. It is a stop-gap arrangement to meet the government’s expenditure.
On the other hand, the Annual Budget is a comprehensive plan for the entire financial year, outlining the government’s priorities and allocations for various sectors and schemes.
