Union Budget 2026 Explained: How Interim And Full Budgets Differ

The Parliament's Budget Session 2026 began on January 28 with President Droupadi Murmu delivering an address to a joint sitting of both Houses.

Finance Minister Nirmala Sitharaman will present the Union Budget 2026‑27 on February 1, a Sunday. The session is structured in two phases and will continue until April 2. The first phase, currently underway, will run until February 13, after which Parliament will adjourn for a recess. It is scheduled to reconvene on March 9 for the second phase.

As the nation prepares for Union Budget 2026, understanding the difference between an Interim Budget and a Full Budget is crucial.

What Is Interim Budget And Full Budget?

An interim budget, also called a “vote-on-account”, is presented by the government just before the general elections. Its main goal is to make sure that government departments and programmes continue to function without disruption. 

A full Budget is the government's detailed financial plan for the entire fiscal year. 

Purpose 

The interim Budget covers only a short period, typically four to five months, which focuses on routine expenditures and essential allocations. 

The full Budget outlines planned revenues and expenditures. It also allocates funds across sectors such as infrastructure, health, education, defence, and social welfare. In addition to this, the full Budget includes new policies, tax reforms, subsidies, and government schemes.

Policy Changes

The interim Budget is a temporary financial arrangement to fund government spending during an election cycle. Its only responsibility is to maintain the government until a new one takes office. So, it does not include introducing new policy changes. 

A full Budget is the government's financial plan for the year, which includes announcements of significant policy changes like the introduction of new taxes, adjustments to tax rates, or the introduction of new government initiatives.

Detailed Discussion

An interim Budget is not intended for in-depth discussion or debates in Parliament. The focus is only on getting approval for the vote-on-account, so the Parliament does not go into the fine details of every allocation or proposal.

In contrast, a full Budget is thoroughly examined and discussed in Parliament.

So, the interim Budget is like a temporary plan for government spending. Its main goal is to keep the government running smoothly and make sure essential services like salaries, pensions, and public programmes continue until a new government comes into power which will present a full, detailed Budget for the entire year.