Finance Minister Arun Jaitley will present Budget 2019 on February 1. That would be an interim budget. An interim budget, just like a full-year budget, is an annual financial statement of a government's finances. It contains key details such as where money comes from (revenue) and where it is spent (expenditure), as well as projections of growth and fiscal position. Unlike a full-year budget, an interim budget covers a smaller period of time, usually few months. (Also read: Five economic challenges faced by government for Interim Budget 2019)
Here are five things to know about interim budget, and how it differs from a full-year budget:
Who creates interim budget?
An interim budget is created by an incumbent government before election. This year, the general election - to elect a central government - is due by May, thus an interim budget.
What does it contain?
An interim budget, similar to a full-year budget, includes details of the government's finances in the past year, as well as estimates of its expenditure in the coming months till election.
What are key components of interim budget?
Other than the Budget speech, the set of documents submitted in Parliament include annual financial statement, demand for grants, finance bill, macroeconomic framework, medium term fiscal policy, and expenditure and receipts (revenue) budgets.
Who presented the last interim budget?
The last interim budget was presented on February 17, 2014 by the then finance minister P Chidambaram.
What is the time gap between Interim Budget and Budget?
An interim budget is followed by another budget by the new government. For example, the interim budget in February 2014 was followed by a full-year budget on July 10, 2014.