“Interim Budget vs Full-Year Budget: What You Need to Know”

Interim Budget vs Full-Year Budget: Decoded

Introduction

The Union Budget is an annual financial statement that outlines the government’s revenue and expenditure for the upcoming fiscal year. However, there are times when the government presents an “interim budget” instead of a full one. In this blog post, we will explore the difference between an interim budget and a full-year budget.

What is an Interim Budget?

An interim budget is presented by the government when it does not have time to present a full budget. Mostly, it is because the general election is around the corner. Thus, as per tradition, the government of the day leaves the task of framing the full budget to the incoming dispensation after the election results. An outgoing government is required to present an interim budget if its tenure is about to come to an end due to impending General Elections. In such situations, the task of presenting a full Budget is left for the next government. A full Budget approves government spending for the full financial year .

What is a Full-Year Budget?

A full-year budget is a comprehensive financial statement that outlines the government’s revenue and expenditure for the entire fiscal year. It is presented by the finance minister in the parliament and is subject to approval by the house. The estimates are presented for the whole year, and the incoming government can completely give the budget a makeover or partially change it after coming to power .

Difference between Interim Budget and Full-Year Budget

An interim budget is technically just like the full budget, but only for a temporary period. Like the full budget, it contains a complete set of accounts, including expenditure and receipts. And like the full budget, the estimates are presented for the whole year. However, in the election year, the government usually avoids announcing any major tax changes or schemes in the interim budget even though it is not constitutionally prohibited from doing so. A vote-on-account, on the other hand, deals with only the expenditure side of things. It’s passed in Parliament without a formal discussion. The interim budget estimates are presented for the full year, but the incoming government can completely give the budget a makeover or partially change it after coming to power .

Conclusion

In conclusion, an interim budget is presented by the government when it does not have time to present a full budget. It is technically just like the full budget, but only for a temporary period. A full-year budget, on the other hand, is a comprehensive financial statement that outlines the government’s revenue and expenditure for the entire fiscal year. The estimates are presented for the whole year, and the incoming government can completely give the budget a makeover or partially change it after coming to power.

 I hope this blog post has helped you understand the difference between an interim budget and a full-year budget. Please follow & thankyou for your support.