Feb 1 budget doesn’t have any spectacular announcements: FM Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Thursday said that citizens should not expect any spectacular announcements in the Interim Budget 2024-25, which is slated to be presented on February 1. The full Budget for FY24-2025 will be presented after the formation of the new government after the general elections to be held in 2024. The dates for Lok Sabha elections are yet to be announced. 

 "I don’t want to be a spoilsport, but the 1st February Budget is just a vote on account; a budget to meet expenditure till the next government comes to power. No spectacular announcements," Sitharaman said at the CII's Global Economic Policy Forum 2023 in New Delhi. 

She added that the regular Budget will be in July and "you will have to wait till then." 

The February 1 budget will be Sitharaman's sixth Budget.

Earlier, Business Today reported that the government may focus on ease of doing business, promoting domestic innovation and pushing up private investments in the Interim Budget 2024-25. 

Sources told Business Today that the Centre is committed to boosting domestic manufacturing and it is accordingly looking at further increasing the measures for this.

The Interim Budget mainly includes estimates for the government's expenditure, revenue, fiscal deficit, financial performance and projections for the coming months.

No major policy announcements are presented in the interim Budget, so that the government is not burdened with promises. As per Election Commission of India's code of conduct, the interim Budget should not include any major scheme as it could influence the voters in favour of the current ruling government. 

Even the incumbent government is also not allowed to present the Economic Survey with the interim Budget.

The Parliament passes a vote-on-account through the interim Budget. The vote-on-account can be described as a provision that allows the incumbent government to obtain Parliamentary approval for essential government spending such as salaries and ongoing expenses.

This wont include major policy changes or new long-term projects. Those are kept for the full Budget, which is presented and passed after the general elections. This is usually valid for up to two months but can be extended.