The interim budget for the upcoming Lok Sabha polls will be presented by Finance Minister Nirmala Sitharaman on February 1, 2024, marking the last budget of the current union government. Analysts are anticipating the announcement of populist measures by the Finance Minister.
The traditional Halwa ceremony took place in the North Block on January 24 to kick off the compilation of documents for Budget 2024. Finance Minister Niramala Sitharaman and Union Minister of State for Finance Bhagwat Kisanrao Karad were in attendance.
The finance ministry is optimistic about FY24 economic growth surpassing the central bank’s projection of 7% and expects FY25 growth to be around 7%, despite potential geopolitical risks leading to supply chain disruptions and inflation.
According to the ministry’s latest economic review, India could aim to become a $7 trillion economy by 2030, with plans to reach a $5 trillion economy in the next three years. The government has set a goal to become a developed country by 2047.
Expectations for Budget 2024 include the introduction of tax exemptions for expenses related to electric vehicles to promote the EV market and provide tax benefits to employees.
An Interim Budget, as defined by Article 116 of the Indian Constitution, is an advance grant to cover short-term expenditure until the new financial year begins. It is a formality during the transition between governments and does not impact the tax regime.
During election years, an interim budget is presented instead of a full budget, focusing on government expenditure. It serves as a temporary authorization for government spending until a new budget can be passed.
An interim budget differs from a regular budget in that it only covers a short period of time and addresses both receipts and expenditures.