Union Finance Minister Nirmala Sitharaman is set to present the Budget 2024 in Parliament on February 1. This budget, which precedes the Lok Sabha elections, is called an Interim Budget or a vote-on-account budget.
Unlike a full budget, which covers all aspects of government finances for an entire fiscal year, the interim budget offers financial information for a transitional period.
This year, the NDA government has presented ‘The Indian Economy: A Review’, a 74-page document penned by Chief Economic Advisor V Anantha Nageswaran. This review, which is not the Economic Survey of India, outlines the state of the Indian economy over the last decade and provides a brief outlook for the coming years.
Following the presentation of the Interim Budget, the Parliament will pass a vote-on-account. This provision allows the government to obtain Parliamentary approval for essential spending, such as salaries and ongoing expenses, for up to two months, although this can be extended if necessary.
The vote-on-account, as per Article 116 of the Constitution, signifies an upfront allocation to the government from the ‘Consolidated Fund of India’, which contains all revenue generated by the central government, including taxes and interest on loans. This fund is specifically designated for addressing immediate expenditure needs.
In essence, an interim budget is similar to a complete budget, but it only includes projections for a limited period. A vote-on-account, which focuses solely on expenditure, can be approved by Parliament without the need for a formal discussion.
(With input from agencies)
