Difference Between Interim Budget & Union Budget

Interim Budget

An interim budget is presented by a government going through a transition period or is in its last year in office before the general elections held every 5 years.

The union budget serves as a comprehensive financial plan encompassing govt. spending, revenue generation, & policy reforms for an entire fiscal year.

Union Budget

Key Components of an Interim Budget

Expenditure Allocations Policy Limitations Approval Process

Key Components of a Union Budget

Revenue and Expenditure Policy Initiatives Parliamentary Scrutiny

The next Budget that will be announced on Feb 1, 2024, will be an interim budget because the general elections are scheduled this year.

The Next Interim Budget

Why is an Interim Budget Prepared? 

In an election year, passing a full-year budget for the ruling government is unrealistic. The interim budget allows the next government to formulate the Union budget.

The interim budget addresses immediate financial needs for a few months until the elections. Union budget spans the entire fiscal year, usually from April 1 to March 31.

Duration of Budgets

Inclusions & Exclusions in the Interim Budget?

The interim budget may include estimates of govt. spending, revenue, fiscal deficit, & financial performance. However, it avoids major policy announcements in order to avoid burdening the next government.

Is a Union Budget Prepared After Elections? 

The ruling govt. crafts an interim budget for its remaining tenure, leaving the responsibility of formulating the full budget to the incoming administration.