What is Interim Budget? Finance Minister Nirmala Sitharaman set to present interim budget on February 1

Finance Minister Nirmala Sitharaman is gearing up for her sixth budget presentation, the Interim Budget 2024, scheduled for February 1 at 11 am. 

This interim financial plan outlines the government’s temporary budget until the new administration takes charge, marking a significant milestone in India’s financial history.

Officials involved in crafting the interim budget are currently under strict confidentiality measures, observed during the ‘lock-in’ period, initiated with the traditional ‘halwa’ ceremony on January 24. The comprehensive budget for the fiscal year 2024-2025 is expected in July, regardless of the new or re-elected government, making this budget crucial for the second term of the Narendra Modi government.

Understanding the interim budget’s concept is vital—it acts as a short-term financial plan to fund government spending until elections are held and a new government assumes power. 

The interim budget ensures the smooth continuation of essential government functions until the new administration takes office, covering critical expenses such as ongoing government activities and salaries.

Scheduled to be presented at 11 am on February 1, the Interim Budget 2024-2025 will adhere to the Election Commission’s Code of Conduct, preventing the introduction of major schemes that could influence voters. While major tax proposals may not be introduced, the government might incorporate populist measures to gain voter support.

This short session, between January 31 and February 9, will include President Droupadi Murmu’s address to a joint sitting of both Houses. 

The government has assured floor leaders of various parties that it is ready to discuss every issue during this interim budget session of Parliament. 

The new government will subsequently present the full-fledged budget, making this session the last of the present Lok Sabha before parliamentary elections are announced.