Budget 2024: Union Finance Minister Nirmala Sitharaman is set to present the interim budget for FY25 on February 1. However, the presentation will not be a full budget but rather a vote on account or interim budget.
In an election year, the government typically presents an interim budget to outline expenditures and revenues until a new government is formed. This interim budget allows the government to manage its financial commitments.
A full-fledged budget is anticipated to be presented in July, after the formation of the newly elected government. The interim budget, often referred to as a 'vote-on-account,' is governed by Article 116 of the Constitution, involving an upfront allocation from the Consolidated Fund of India to cover short-term expenditures.
An interim budget provides an overview of the government's expected receipts and expenditures until the new government takes charge. On the other hand, a comprehensive annual budget encompasses all aspects of government finances, including earnings, spending, allocations, and policy declarations. The annual budget serves as a strategic roadmap for the nation's economic course throughout the fiscal year.
Interim budgets have certain limitations imposed by the Election Commission of India to prevent undue influence on voters. Major taxes or policy reforms are generally avoided during interim budgets to ensure impartiality. While there is no constitutional prohibition against making substantial announcements, governments traditionally refrain from major policy declarations during a "vote on account."
Finance Minister Sitharaman has already indicated that her upcoming budget will not feature any "spectacular announcement," as it will primarily serve as a "vote on account" before the general elections.
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