On February 1, 2024, Union Finance Minister Nirmala Sitharaman will present the interim budget for 2024-25. This interim budget differs from the regular one due to its transitional nature.
In December, Sitharaman clarified that the upcoming budget would serve as a “vote on account” before general elections. No major announcements are expected during this period.
The interim budget outlines expected receipts and expenditures until a new government forms, unlike the comprehensive full-year budget that covers all aspects of government finances.
With Lok Sabha elections in April-May 2024, Sitharaman will present the interim budget on February 1, effective from April 1, 2024. Major policy announcements are traditionally avoided during this period.
The interim budget, also known as a ‘vote-on-account,’ authorizes specific expenditures until a new government assumes office, adhering to Election Commission limitations to prevent undue voter influence.
Nirmala Sitharaman emphasized that the February 1, 2024, budget would be a vote on account, serving the government’s expenditure needs until a new government takes charge.
Before the vote-on-account, customary pre-budget ‘Economic Surveys’ are abstained from, a tradition usually observed a day before the full budget presentation in July.
A vote-on-account typically remains effective for two months, with possible extensions if necessary. As per Article 116 of the Constitution, it signifies an upfront allocation for immediate expenditure needs from the ‘Consolidated Fund of India.’
