The Budget 2020 will be presented on February 1 by Finance Minister Nirmala Sitharaman. This will be the second budget for Prime Minister Narendra Modi-led NDA government after coming back to power for the second consecutive term by gaining landslide victory in the Lok Sabha Elections 2019. Ahead of the Budget presentation, let us take a look at what is Interim Budget.
The term ‘interim’ means temporary or for the time being. The Interim Budget contains detailed documentation of every expense to be incurred and every rupee to earned through taxes for the time until a new government comes to power. During the transition period, the ruling government needs the Parliament’s approval to extract money from the Consolidated Fund of India, where the government puts all its revenue.
When the election is around the corner, the government, instead of an Annual Budget, pass an Interim Budget, consisting of full estimates of the revenue and expenditure and also some policy measures too.