For the sixth consecutive year, Union Finance Minister Nirmala Sitharaman will be presenting the Union Budget 2024.
Sitharaman will be presenting the ‘interim Budget’ for the year 2024-25, as the next financial year is coinciding with the Lok Sabha elections 2024.
The provisions of the interim budget will be valid till the results of the Lok Sabha elections 2024 and the subsequent new government is announced, referred to as ‘vote on account.’
It is the estimated expenditure which the government tables for passage ahead of the general elections. It covers the expenses that are required before a new government takes charge. The vote-on-account, similar to the fiscal document present in a regular budget year, must receive the nod of the majority in the Parliament.
The interim budget will be announced for the fiscal year starting on April 1, 2024 and ending on March 31, 2025, in two parts.
Part A of the budget will include financial schemes the health, education, banking, rural and urban industries sectors as well as welfare schemes.
Part B of the budget will include information on the taxation policy including any revisions in income tax slabs, customs, excise duty and more. The Finance Bill will include details on the imposition, abolition, remission, alteration or regulation of taxes.
The revenue and expenditure document of the budget will give projections about how much revenue is expected through income tax, corporate tax, GST, excise duty etc.
Expenditure includes the ministry-wise breakdown of expenses in defence, education, health, etc. Extra-Budgetary resources, which are not included in tax and non-tax revenue, are also to be include in the budget presentation.
The Budget will first be passed by Lok Sabha and then will go to Rajya Sabha, following debates and discussions on the same as always.
‘No spectacular announcements will come at that time (in vote on account). So you will have to wait till after the new government comes in and presents the next full Budget in July 2024,’ the FM had said while speaking at the CII Global Economic Policy Forum in early December.
‘It is a matter of truth that February 1, 2024 budget that will be announced will just be a vote on account because we will be in an election mode. So the budget that the government presents will just be to meet the expenditure of the government till a new government comes to play,’ Sitharaman said.
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