Interim Budget vs. Final Budget

An Interim Budget is presented by the government when the general elections are around the corner and the tenure of the current government is about to end. Its primary purpose is to meet the government’s expenditure until the new government is formed after the elections. The Interim Budget does not propose any major policy changes or new taxation measures. The Final Budget, on the other hand, is presented by the newly formed government and outlines its fiscal policies, taxation proposals, and expenditure plans for the upcoming financial year.

Consequences and Non-Consequences

The Interim Budget typically extends the existing policies and expenditure patterns of the previous year. It does not introduce new schemes or significant changes in tax rates as it is intended to maintain continuity until a new government is formed. However, the Final Budget may introduce new policies, taxation measures, and spending priorities based on the agenda of the newly elected government.

Applicability

The Interim Budget is applicable for the period until the new government is formed after the elections. It ensures that essential government functions continue smoothly without interruption during the transition period. The Final Budget comes into effect for the upcoming financial year once it is approved by the parliament.

Terms and Conditions

The Interim Budget is subject to the same terms and conditions as any other budget presented by the government. It requires approval from the parliament to allocate funds for various government programs and expenditures. The Final Budget undergoes thorough scrutiny and debate in the parliament before it is passed.

Proposal of Interim Budget

The Interim Budget is proposed and presented by the incumbent government shortly before the completion of its term. it serves as a temporary financial plan to address the government’s expenditure needs until the new government takes office. Typically, the Interim Budget is presented in the parliament a few months before the general elections are scheduled to take place.

By considering these points, you can provide a comprehensive overview of the Interim Budget and Final Budget and their significance in the fiscal landscape of India.