Budget 2024 Date, Time: All you need to know about Interim Budget to be presented by FM Sitharaman

Interim Budget 2024: Union Finance Minister Nirmala Sitharaman is all set to read out the Interim Budget 2024 in the Parliament on February 1 at 11 am. All eyes are set on the Interim Budget that will roll out the key decisions made by the Centre. The Interim Budget is presented by the outgoing government ahead of the Lok Sabha polls in the Budget session. The comprehensive Budget is then presented by the new government after winning the Lok Sabha elections.

FM Sitharaman’s Interim Budget is expected to talk about the government’s achievements since 2014 and will look ahead at Amrit Kaal of 2047. Just like the last interim budget, the Budget 2024 document is expected to give details about the past, charge the present, and communicate the future.

The Interim Budget mainly focuses on a breakdown of the government's expected income and expenses until the formation of the new government. On the other hand, a comprehensive Budget covers all aspects of government finances, including revenue, expenditure, allocations, and policy announcements. A full-year Budget serves as a strategic roadmap, outlining the country's economic path for the entire fiscal year. The interim budget offers financial information for the transitional period.

The presentation of an interim budget follows the same schedule as the Union budget would in a regular financial year.

In recent years, the Interim Budget has become crucial for the ruling governments as a strategic tool for general elections. It allows them to present the economic vision of the ruling party, giving an outlook why they should be re-elected.

In the last interim budget, former FM Piyush Goyal announced some crucial changes:

> No income tax for earnings up to Rs 5 lakh
> Individuals with gross income of up to Rs 6.5 lakh need not pay any tax if they make investments in provident funds and prescribed equities
> Standard tax deduction for salaried persons raised from Rs 40,000 to Rs 50,000
> TDS threshold on interest on bank and post office deposits raised from Rs 10,000 to Rs 40,000
> TDS threshold on rental income increased from Rs 1.8 lakh to Rs 2.4 lakh
> I-T processing of returns to be done in 24 hours
> Within the next 2 years, all verification of tax returns to be done electronically without any interface with the taxpayer
> Package of Rs 6,000 per annum for farmers with less than 2 hectares of land. Scheme to be called Pradhan Mantri Kisan Samman Nidhi.
> Vande Bharat Express, an indigenously developed semi high-speed train, to be launched
> One lakh digital villages planned in the next five years
> Fund allocation for the Northeast region increased to Rs 58,166 crore, a 21% rise over last year for infrastructure development
But one should note that major policy announcements that could burden the next government cannot be included in the Interim Budget. According to the Code of Conduct of the Election Commission of India, the Interim Budget cannot include any significant schemes as it may sway the voters. Additionally, the ruling government is not permitted to present the Economic Survey alongside the interim Budget.

This year, the NDA government presented 'The Indian Economy: A Review', the 74-page document written by V Anantha Nageswaran, Chief Economic Advisor presented an overview of India’s growth and outlining challenges in the next fiscal year.

“This is not the Economic Survey of India prepared by the Department of Economic Affairs. That will come before the full budget after the general elections. This review takes stock of the state of the Indian economy and its journey in the last ten years and offers a brief sketch of the outlook for the economy in the coming years," read the report titled Indian Economy–A Review'.

After the Interim Budget is presented, the Parliament passes a vote-on-account. This is a provision that allows the government to obtain Parliamentary approval for essential government spending such as salaries and ongoing expenses. This is usually valid for up to two months but can be extended.

According to Article 116 of the Constitution, a vote-on-account signifies an upfront allocation to the government from the ‘Consolidated Fund of India’, specifically designated for addressing immediate expenditure needs. The Consolidated Fund of India contains all revenue generated by the central government, including taxes, interest on loans, and other such collections.

An interim budget is similar to a complete budget. One major difference is it only includes projections for a limited period of time, rather than an entire financial year. A vote-on-account focuses solely on expenditure and can be approved by Parliament without the need for a formal discussion.

(With agency inputs)

Also read: Interim Budget 2024: What major announcements were made in Interim Budget 2019; check details

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Also watch: Morgan Stanley's Economic Vision For Budget 2024