By Khushi Pal
Published Jan 28, 2024

Hindustan Times
In Focus

Photo Credits: HT File Photo

What is interim budget? Key things to know

Union finance minister Nirmala Sitharaman will present the interim budget for the fiscal year 2024-25 on February 1. 

But what is an interim budget? Here are some key points to know. 

Unlike a comprehensive budget, an interim budget will outline the government's anticipated receipts and expenditures until the new government is formed.  

The interim budget will provide financial details for the transitional period.

Also known as ‘vote-on-account’, it serves as an authorisation for incurring specific expenditures which are necessary until a new government assumes office.

The Election Commission has proposed certain limitations on an interim budget. For instance, it cannot propose major taxes or policy reforms.

 A vote-on-account remains effective for two months. It can be extended if necessary.

Since 2021, India has followed a 'paperless' budget practice in which the budget is read from a tablet.

The budget session begins on January 31 after the President of India addresses a joint sitting of the two Houses – Rajya Sabha and Lok Sabha.

It is followed by the 'halwa ceremony' which marks the final stage of the budget presentation.

The 'halwa ceremony' precedes the 'lock-in' process in which the concerned officials stay inside the Budget Press in the North Block until the final day to avoid leaks.