#YOU NEED A BUDGET ALTERNATIVE FULL#

The reasoning is thatВ it would be the prerogative of the new government to signal its policy direction, which is often reflected in the budget it presents soon after the formation of the new government. The Union government can also introduce tax changes but during an election year, successive governments have avoided making any major changes in tax laws during an interim budget.Even though interim budgets are quite similar to a full-budget in terms of presentation of expenditure for the ongoing fiscal and projections for the upcoming fiscal year, the ruling government have traditionally opted to present a vote-on-account for a four-month period to incur the cost of administrative expenses and day-to-day running of the government.Conventionally, no major policy decisionsВ are taken during the interim budget.В However, several governments in the past, including the Congress-led United Progressive Alliance had made major policy announcements while presenting interim budgets just before 20 general elections.

#YOU NEED A BUDGET ALTERNATIVE FULL#

An interim budget is the budget of a government that is going through a period of transition while full budgets are not only an annual financial statement of the government but also present the direction of economic policies of the incumbent government.

What is the difference between an interim budget and a full budget? On February 1, NDAВ government at the centre is set to present its last Budget ahead of the 2019 Lok Sabha elections.В Conventionally, a government at the end of its term presents an interim budget rather than a full Budget.В There is a divided opinion on the issue as few experts are in favour of a full budget, others oppose it on the ground that in an election year the ruling government cannot present a full budget as it has already presented five full budgets in the previous years, and it does not have the mandate to rule the country for the whole year.

Besides, Article 114 (3)В of the Constitution specifies that no amount can be withdrawn from the Consolidated Fund without the enactment of a law i.e appropriation bill. Even though the government receives finances through various means, it needs approval from the legislature to spend the money in various heads.ДЄrticle 266В of the Constitution of India mandates that Parliamentary approval is required to draw money from the Consolidated Fund of India. The underlying principle of presenting a budgetВ is to ascertain the legislative approval on the annual expenditure made by the executive led by the incumbent government.В The government needs money for its functioning. But what is the difference between an interim budget and full budget? LetвЂ™s find out.

Yesterday, the Finance Ministry clarified that the finance minister will be presenting an interim budget in Lok Sabha on February 1, not a full budget. For the last several weeks, speculation was going on in media that Modi government is considering a full budget in the budget session of parliament that started today, instead of an interim budget.

You need a budget alternative