Budget 2024 Ensures Stability with No Tax Changes
Finance Minister Nirmala Sitharaman took to Parliament today to present the Interim Budget 2024, marking a pivotal moment ahead of the upcoming Lok Sabha elections in 2024. As the final budget in the second term of Prime Minister Narendra Modi, this interim budget sets the stage for the government’s financial management until the formation of a new government post-election. While this budget is interim in nature, the comprehensive budget for the financial year 2024-25 will be introduced once the new government assumes office.
The Interim Budget serves a crucial function by outlining expenditures and revenues until the formation of the new government, enabling the incumbent administration to fulfill its financial obligations during this transitional period. In essence, it provides a roadmap for fiscal management until the new government takes charge.
During an election year, the presentation of a full budget by the incumbent government is not feasible. Instead, an Interim Budget is presented, which covers the government’s expenses and revenues for a limited duration. This allows for continuity in financial governance while respecting the democratic process and ensuring a smooth transition of power.
The Interim includes estimates for various fiscal parameters such as government expenditure, revenue, fiscal deficit, and financial performance, providing a snapshot of the country’s economic trajectory for the interim period. While it may not encompass the comprehensive scope of a full-fledged , it nonetheless serves as a crucial tool for financial planning and management in the interim period.
The Union Budget, on the other hand, is the annual financial statement that delineates the estimated costs and expenses of the government for the entire financial year. It offers a comprehensive overview of the government’s fiscal policies, priorities, and allocations across different sectors and programs.
Following the Lok Sabha elections, the new government will assume office and present a full-fledged , encompassing its vision and priorities for the coming financial year. Until then, the Interim serves as a guiding framework for fiscal management and governance.
Prime Minister Narendra Modi, speaking on the Interim Budget, highlighted key measures aimed at providing relief to the middle class through an income-tax remission scheme, as well as important decisions benefiting farmers. Additionally, Finance Minister Nirmala Sitharaman announced the formation of a high-powered committee tasked with addressing population challenges, underscoring the government’s commitment to tackling critical issues facing the nation.