The Union Finance and Corporate Affairs Minister Smt Nirmala Sitharaman presented the Interim Union Budget for 2024-2025 in Parliament on 1 February 2024.
About interim budget
- The interim budget is presented to both Houses by the Finance Minister. There is no constitutional provision for an interim budget.
- The interim budget is put to vote and then sent for Presidential approval. Like the Union budget, the interim budget too is debated in the Lok Sabha before passage and is valid for the entire year though it is merely a transition arrangement.
- The interim Budget includes estimates for the government’s expenditure, revenue, fiscal deficit, financial performance and projections for just a few months.
Vote of Account
- In an election year, the incumbent Government cannot present a full Budget as there may be a change in the executive after the polls. Hence, the need for an interim budget.
- As there is no constitutional provision for an interim budget, the Centre can choose to seek the Lower House’s approval for the funds required for the transition period (April – July) till the new government presents a full Budget— via the votes on account provision.
- The Parliament passes a vote-on-account through the interim Budget which allows the government to obtain Parliamentary approval for essential government spending such as salaries and ongoing expenses.
- Article 116 of the Constitution allows the Lower House to make any grant in advance for the estimated expenditure for part of any financial year by voting and passing such a legislation, i.e. vote on account.
- The Lok Sabha is empowered to authorise withdrawal of required funds from the Consolidated Fund of India for such expenditure.
- A simple vote on account includes presenting the Centre’s fund requirements for salaries, ongoing projects and other expenditure for the transitional period, and is then passed via the Lok Sabha sans debate.
- It cannot make any changes to tax rates. It is also valid only for two months and can be extended up to four months.
