Union Budget 2024 Will Be Different From Previous Budgets: Check List Of Most Common FAQs Here

The Union Budget 2024 will be different from earlier budgets as this will be a vote on account budget of the current BJP-led Modi government. The Feb 1, 2024 budget will be the last budget of the current government before the parliamentary elections, scheduled to be held in April-May this year.

In an election year, the government does not present a full-fledged Budget for the entire year, rather the government prepares an interim budget or a vote on account that encompasses the expenses and revenues of the government until a new government is formed. Prior to this, the interim Budget was presented ahead of the 2019 Lok Sabha elections by acting Finance Minister Piyush Goyal. So far, fourteen Interim Budget have been presented.

The full Budget will be presented after the formation of the new government at the centre.

FAQs

Why interim budget is presented?

A Union Budget is usually valid till the completion of one financial year on March 31, hence the government has speeding rights only till that date. For the government expenditure occurring between March 1 until the the formation of the new government, the incumbent government required permission from the Parliament to incur costs in the interim period. Hence, the interim Budget is presented.

What cannot be included in interim budgets?

The interim budget typically includes estimates of expenditure, revenue, fiscal deficit, financial performance, and projections for the upcoming financial year. However, it cannot include any major policy decisions. According to the Election Commission's code of conduct, an Interim Budget is not allowed to include any major scheme as it may influence the voters. The incumbent government is not required to present the Economic Survey with the interim Budget.

Who will present the interim budget for 2024?

Finance Minister Nirmala Sitharaman will present the interim budget 2024 in parliament on February 1 at around 11.00 am.

When will the Economic Survey be presented in Parliament?

This year, a 'concise' document on the state of India's economy - and not a full-fledged economic survey - may be presented for 2024-25 prior to the interim budget on February 1.

When did the government start its annual budget-making exercise?

The Ministry of Finance started its annual budget-making exercise on September 4, 2023.

What is the meaning of fiscal deficit?

Fiscal deficit refers to The difference between total revenue and total expenditure of a government in one financial year. The term fiscal deficit indicates the total shortfall in a government's earnings in comparison with its spending. In calculating the total revenue, borrowing is excluded.

Expectations from the 2024 Budget

The govt is expected to adopt a holistic approach to India's infrastructure sector, prioritizing urban development, railways, roads, aviation, ports, and industrial development, especially in tier-2 and tier-3 cities. The govt is less likely to announce any tax reforms in the upcoming budget. The Finance Minister recently clarified that the focus of the upcoming Budget will be on meeting the current government's expenditure with significant adjustments (if any) to be made post-election.

However, post-election, it is expected that the authorities may consider reducing the highest tax rate of 30% to 25% under the new tax regime and increasing the standard deduction from the current threshold of Rs 50,000. Besides, according to industry experts, the upcoming interim Union Budget 2023 is unlikely to bring any significant changes to income tax rebates.

The forthcoming interim Budget 2024-25 is anticipated to increase the outlay for capital expenditure. Besides, the government is also expected to focus on the energy sector, especially green and sustainable energy in its interim budget 2024.

Can You access budget documents online?

Yes, you can access budget documents online as all 14 documents are uploaded on the 'Union Budget Mobile App.'