Interim Budget 2024: Time, items, policies - All your FAQs answered

Finance Minister Nirmala Sitharaman is poised to present the interim Budget 2024, a practice undertaken during election years when a full budget cannot be presented by the incumbent government. Let's take a look at all frequently asked questions (FAQs) about the interim Budget.

Also read: Budget 2024 LIVE Updates: Nirmala Sitharaman presents her sixth budget

What is an interim Budget? 

The interim Budget covers government expenses and revenues for a short span in an election year until a new government is elected. It outlines the government's expenditure and revenue proposals until a full-fledged budget is presented by the new government. The Union Budget, on the other hand, is the annual financial statement that outlines the estimated costs and expenses of the government for the following fiscal year. 

What items are included in the interim Budget?  

The interim Budget includes estimates for government expenditure, revenue, fiscal deficit, and financial performance for a few months, but cannot include major policy announcements. 

What is the duration covered by an interim Budget?

An interim budget usually covers the immediate financial needs and allocations for the next few months until the new government can present a complete budget for the entire fiscal year.

Can significant policy changes be introduced in the interim Budget?

Generally, interim budgets focus on maintaining continuity and do not introduce major policy changes. However, they may include some policy adjustments and new initiatives if there is an urgent need or if they are in line with the ongoing government's priorities.

Who presents the interim budget?

The interim budget is typically presented by the incumbent government's finance minister before the expiration of their term.

What is the difference between an interim Budget and a regular Budget?

An interim budget is a shorter-term financial statement that allows for the smooth functioning of the government until a new administration can present a full budget for the entire fiscal year. 

What happens to the interim budget after the new government takes office?

The new government has the option to either continue with the allocations and proposals outlined in the interim budget or make revisions based on its priorities and policies. The interim budget serves as a provisional guide until the full budget is presented.

This is Sitharaman's sixth budget under the Prime Minister Narendra Modi-led administration. In the 2023-24 budget, a total expenditure of Rs 45,03,097 crore was proposed with the highest allocation going to sectors like defence, road transport and highways, railways, health and family welfare, and jal shakti.