Budget 2019 will be an interim Budget: clarifies Finance Ministry

The sources within the Finance Ministry has struck down reports of a full Budget being announced on February 1. The Vote on Account will only be for three months before the new government presents a full-fledged budget in July. Piyush Goyal who has taken interim charge of the Finance Ministry will be announcing the budget. 

The clarification from Finance Ministry reads:

"This Budget will be called Interim Budget 2019-20 and therefore, don't have any confusion on this issue."

When is an interim budget presented?

The term ‘interim’ means temporary or for the time being. The Interim Budget contains detailed documentation of every expense to be incurred and every rupee to earned through taxes in the coming few months until the new government comes to power. During the transition period, the ruling government needs the Parliament’s approval to extract money from the Consolidated Fund of India, where the government puts all its revenue.

When the election is around the corner, it is unrealistic for the ruling government to launch a regular Annual Budget. So it gets passed as an Interim Budget, consisting of full estimates of the revenue and expenditure and also some policy measures too.

When is interim budget applicable?

Interim Budget is usually presented by the ruling government before the General Lok Sabha Elections held every 5 years. Just like every Union Budget, this provisional Budget too will be like a progress report card on the expenses and income earned in the past year. As for the future, it can only propose possible expenditures in the months leading to the Election (which should not be more than 6 months). The ruling government does not usually announce any major tax reforms that could financially burden the next government. 

Does Interim Budget 2019 hold any value?

The 2019 Interim Budget will be crucial as it can impact the voters deeply. Though it is not the complete budget, it will entail the source of money as well as touch on how it will be utilized.

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