Introduction
Finance Minister Nirmala Sitharaman is set to present the Interim Budget 2024 on February 1, 2023. This will be the Minister’s 6th budget presentation, including 5 annual budgets and her first-ever Interim Budget.
The timing of the Interim Budget just months before the crucial Lok Sabha elections has already stirred controversy, with critics alleging that the government may use it for political gains. Let’s analyze what sets this budget apart.
Understanding Interim Budgets
- An Interim Budget is presented during an election year and deals with revenues and expenditures for a short period until a new government is sworn in.
- It does not contain any policy announcements or tax changes as these are reserved for the full Union Budget to be presented by the new government.
- Previous finance ministers like P. Chidambaram and Piyush Goyal have also presented interim budgets.
FM Sitharaman’s Budget Presentations
- Nirmala Sitharaman will deliver her 6th budget speech on February 1, 2023.
- This includes 5 annual Union Budgets from 2019 to 2023 and the first-ever Interim Budget by her.
- Her 2023 Union Budget focused on capital spending, tax rebates, and support for agriculture. Fiscal deficit was budgeted at 5.9% for FY 2024.
Key Aspects of Interim Budget 2024
Finance Minister Nirmala Sitharaman is widely expected to focus on:
- Government’s expenditure and revenue projections for the first few months of fiscal year 2024-25.
- Assessment of the economic and fiscal situation.
- Progress made towards set targets.
- Budget estimates in line with 2023 Union Budget.
Controversy Around Pre-Election Timing
- The Interim Budget is being presented just weeks before the code of conduct kicks in for Lok Sabha elections.
- Opposition parties allege that the budget timing gives leeway for the government to influence voters through populist measures.
- However, experts argue that major policy announcements will be avoided in an interim budget.
Conclusion
The Interim Budget 2024 will be a significant one as FM Sitharaman navigates economic uncertainties in an election year amidst pressure from political rivals. While major reforms may be on hold, all eyes are on the government’s fiscal consolidation roadmap and spending priorities in its final budget before elections.