Why we should not have high expectations from Modi Government in upcoming Budget | Interim budget 2019

Why we should not have high expectations from Modi Government in upcoming Budget | Interim budget2019

Many people believe that the Interim Budget or Final Budget/Union Budget are same thing. But no, there is a huge difference between Interim Budget and Final/Union Budget. Through this article, let us understand what is the meaning of term Interim Budget and what is the difference between Interim Budget and Final/Union Budget.

Also after reading this article one will have a understanding that why it is not logical to have high expection from the budget which will be announced by Modi Government on 1st February 2019.

 

As we all know that Lok Sabha Elections are coming nearby, the budget which will be announced by Modi Government on 1st February 2019 is the Interim Budget.

 

Why we should not have high expectations from Modi Government in upcoming Budget | Interim budget 2019

Interim budget or Vote of Account

Interim Budget is the Budget of a government which is going through a transitional period.

In order to manage its expenditure for the interim period till a new government takes over and announces the Budget, the outgoing government presents what is called avoteonaccountor an interim budget to get the Parliament's approval for expenditure to be incurred for the next few months.

Difference Between Interim Budget and Final/Union Budget

 

Particulars	Interim Budget	Final Budget
Meaning	Interim Budget is the Budget of a government which is going through a transitional period.	Final Budget is the Budget of a Continuing government.
Example	The budget which will be announced by Modi Government on 1st February 2019 is the Interim Budget.	The budget which was announced by Modi Government for Financial 17-18 was the Final Budget.
Purpose	Interim Budget is a means through which the current government can manage its finances for limited period of time. There are no major announcements related to any new schemes or sops during a vote on account as the new government's stance could differ from that of the outgoing government.	A Full Budget is not just the presentation of annual finances of the government but an occasion to change existing tax slabs, announce new schemes and sops for different sectors of the economy.

 

Why it is not logical to have high expection from Modi Government in upcoming budget orInterimBudget

I hope that by now you must have understood that the Budget which will be announced by Modi Government on 1st February will be Interim Budget and not Final/Union Budget. Modi Government cannot announce new policy or Tax benefit in the Interim Budget.

In Interim Budget, the government is only going to announce the expenditure which is to be incurred for the next few months.

Any new policies, change is Tax slab etc will be made by the government which comes into power after the Lok Sabha Elections takes Place.

This is the reason that why it is completely illogical to have high expectations from Modi Government in upcoming budget orInterimBudget

Compiled by CA Pratibha Goyal. She can be contacted at [email protected].