Union Budget 2024: Why India Has Two Budgets This Year

Finance Minister Nirmala Sitharaman presented the Interim Budget on February 1 and will present the Annual Budget on July 23, 2024.

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Finance Minister Nirmala Sitharaman will present the Union Budget 2024 on July 23.(File)

Finance Minister Nirmala Sitharaman will table the Union Budget on July 23. With that, she will become the first Finance Minister to deliver seven straight budgets, surpassing Morarji Desai. She presented the interim budget on February 1, 2024.

Why India has two budgets this year?

India has two budgets this year due to the recent general elections. The Interim Budget, presented before the election, was a temporary measure to ensure continuous government funding until a new government took office. The upcoming Full Budget, to be presented by the newly elected government, outlines the detailed financial plan for the fiscal year, including revenue, spending, and economic policies.

The Interim Budget is a limited version, only covering essential expenses until the new government takes over. In contrast, the full budget is a detailed financial plan, outlining the government's vision for the entire year. This includes allocations for various sectors, tax proposals, and initiatives to boost economic growth.

Key differences between the Interim and the Annual Budget

The Interim Budget is a temporary measure presented by the current government before elections. It deals with expenditure only and can be passed without discussion. This budget allows the government to withdraw money from the Consolidated Fund of India to meet its expenses until a new government comes to power.

The Interim Budget usually does not contain major policy measures or changes to the tax structure. 

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On the other hand, the Full Budget is a comprehensive financial plan presented by the new government after the elections. It includes revenue, expenditure, and policy details and is scrutinised and debated by both Houses of Parliament.

The Full Budget must be approved by Parliament and is valid until the end of the financial year, March 31. It includes new policies, schemes and reforms aimed at driving long-term growth and development.

Annual Budget: Date

The Budget session will commence on July 22 and run until August 12. Finance Minister Nirmala Sitharaman will present the Union Budget 2024 on July 23. 

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