The interim Budget, a ‘stop-gap’ arrangement, will be presented by Union Finance Minister of India on February 1 2024 as a full Budget will be presented in June-July.

• Definition – It is a shorter-term financial statement that allows for the smooth functioning of the government until a new administration can present a full budget for the entire fiscal year.

Budget or Annual financial statement is a statement of the estimated receipts and expenditure of the Government of India for a specific financial year according to Article 112 of the Indian Constitution.

• Need – In an election year, the incumbent Government cannot present a full Budget as there may be a change in the executive.
• Legality – There is no constitutional provision, so the Centre can seek the Lower House’s approval for the funds for the transition period via the vote on account provision.

• Convention – It has been the trend for outgoing governments to present an interim budget instead of a vote on account.
• Features – It will present the current state of the Indian economy, its fiscal status including India’s revised estimated growth in the next year and also detail the government’s planned and non-planned expenditure and receipts.
• The government is allowed to revise tax rates.

• In 2024 – India is likely go to polls in April-May, thus Interim Budget will be presented for the 1^st 4 months of this fiscal year.

If the Budget is not passed by the Lok Sabha, the Prime Minister and his Cabinet will have to resign.