Finance Minister Nirmala Sitharaman is prepared to present the interim budget 2024 on February 1 at 11 am, outlining the temporary financial plan until the new government assumes charge. Photo Courtesy: PTI
Understanding the concept of an interim budget is crucial. It functions as a short-term financial plan to fund central government spending until elections are conducted, and a new government assumes power.
The outgoing government formulates an interim budget to ensure the uninterrupted continuation of essential government functions and services until the next administration takes office.
To cover critical expenses such as ongoing government activities and salaries for central government personnel, the Parliament approves a vote-on-account. While the duration of a vote-on-account can be extended if necessary, its typical duration is two months.
The interim budget remains effective until March 31, 2024, beyond which the spending power of the current government is constrained.
The Interim Budget does not involve significant policy announcements that could impose financial burdens on the next government responsible for presenting the full Union Budget.
Photos courtesy: PTI
ADVERTISEMENT
