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

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.

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

The interim budget outlines anticipated government receipts and expenditures until the formation of the new government.

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

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

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

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

Interim budgets have certain constraints to prevent undue influence on voters. Major taxes or policy reforms cannot be proposed.