Interim budget

Polity & Governance glossary

Topic: Parliamentary Procedure, Committees and Privileges · NCERT: Beyond NCERT

Meaning

An interim budget is a short-term budget that an outgoing government presents in an election year. It comes with a vote on account, which is advance permission to spend for a few months. By convention, it avoids big tax or policy changes. The new government that wins the election then presents the full budget.

Example

On 1 February 2024, the outgoing government presented an interim budget. After the general election, the full budget was presented on 23 July 2024. The interim budget of 1 February 2019 announced PM-KISAN.

Don't confuse with

  • Vote on account (Art. 116(1)(a)): this is only an advance grant to keep the government running, usually for two months. An interim budget is the fuller financial statement, and it is presented together with a vote on account.

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