What is an interim budget?
As per the dictionary, ‘interim’ means meanwhile. When it’s an outgoing government or the case where the government doesn’t have time to present the full budget because the elections are approaching, it presents a proposed budget which later can be approved finally by the incoming government.
An Interim Budget is not the same as a ‘Vote on Account’. While a ‘Vote on Account’ deals only with the expenditure side of the government’s budget, an Interim Budget is a complete set of accounts, including both expenditure and receipts.
An Interim Budget gives the complete financial statement, very similar to a full Budget.
Difference between a regular budget and interim budget
Just like the regular budget, estimates are presented for the whole year in the Interim Budget.
The only difference is that the in the interim budget, changes can be made after the nod from the parliament or if the incoming government wishes to while in the regular budget, changes can’t be made that simple.
Constitutionally, the new government can make changes in expenditure and tax but in last 12 interim budgets after Independence, the government has refrained from making big-ticket changes after the budget is presented.