What is an interim budget, how is it different from regular one?

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1. Interim budget precedes formation of new government:

The interim budget for 2024-25 by Finance Minister Nirmala Sitharaman is a precursor to the formation of the new government following the impending general elections. Image credits: Pexels

2. Vote on Account:

Finance Minister Nirmala Sitharaman downplays expectations for her sixth budget, clarifying that it will be a "vote on account" without any sensational announcements. Image credits: Pexels

3. Understanding Interim Budgets 2024:

The interim budget outlines anticipated government receipts and expenditures until the formation of the new government. Image credits: Pexels

4. Full-year budget as a strategic economic guide:

A full-year budget serves as a strategic roadmap, delineating the economic trajectory and policy directions for the entire fiscal year. Image credits: Pexels

5. New government to present complete budget in July 2024:

With Lok Sabha elections expected in April-May 2024, the subsequent new government will present a comprehensive budget in July 2024. Image credits: Pexels

6. Limits on policy announcements:

Traditionally, interim budgets refrain from major policy announcements, adhering to a convention that avoids substantial declarations during a transitional fiscal plan. Image credits: Pexels

7. Authorizing expenditures:

The interim budget serves as an authorization for incurring specific expenditures necessary during the transitional period until a new government takes office. Image credits: Pexels

8. Election Commission imposes limits on interim budget:

Interim budgets have certain constraints to prevent undue influence on voters. Major taxes or policy reforms cannot be proposed. Image credits: Pexels Find Next One