1. Finance Minister Nirmala Sitharaman set to present Interim Budget ahead of 2024 Lok Sabha elections.
2. The Interim Budget serves as a financial tool, outlining expenditures and revenues until the formation of a new government.
3. This budget marks the final one in Prime Minister Narendra Modi’s second term.
New Delhi, Feb 01: Union Finance Minister Nirmala Sitharaman is poised to present the Interim Budget today, a precursor to the Lok Sabha elections in 2024 and the final budget in Prime Minister Narendra Modi’s second term.
This interim budget outlines expenditures and revenues until the formation of a new government, serving as a financial management tool for the incumbent government.
President Droupadi Murmu highlighted India’s remarkable economic growth in 2023, positioning it as the fastest-growing major economy amid global challenges. With a growth rate of around 7.5 percent for two consecutive quarters, India has demonstrated resilience in the face of economic uncertainties.
During an election year, the incumbent government is restricted from presenting a full budget. Instead, an Interim Budget is introduced, covering the government’s expenses and revenues for a limited period until the new government takes charge.
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The Interim Budget encompasses estimates for government expenditure, revenue, fiscal deficit, financial performance, and projections for a few months. It serves as a crucial financial roadmap during the transitional phase between governments.
In contrast, the Union Budget is an annual financial statement that provides a comprehensive overview of the government’s estimated costs and expenses for the entire financial year.
The Interim Budget acts as a stopgap measure until the new government, elected after the Lok Sabha elections, presents the full-fledged budget.
As Nirmala Sitharaman unveils the Interim Budget, attention will be focused on key sectors, and stakeholders will closely analyze the fiscal priorities and allocations outlined in this interim financial plan.
The full-fledged Union Budget for the financial year 2024-25 will be introduced after the formation of the new government following the general elections.
