INTERIM BUDGET (Syllabus: GS Paper 3 – Economy)

Context: The Finance Minister recently presented her sixth budget, unveiling announcements that spanned railways, tourism, healthcare, technology, aviation, green energy, aquaculture, housing, and more.

Interim Budget

• About: The interim Budget covers government expenses and revenues for a short span in an election year until a new government is elected.

oIt outlines the government's expenditure and revenue proposals until a full-fledged budget is presented by the new government.

• Items are included: Estimates for government expenditure, revenue, fiscal deficit, and financial performance for a few months, but cannot include major policy announcements.
• Duration: 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.
• Presented by:Incumbent government's finance minister before the expiration of their term.
• Union Budget: It is the annual financial statement that outlines the estimated costs and expenses of the government for the following fiscal year.
• Difference between an interim Budget and a regular Budget

oAn 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.