The Interim Budget 2024 was introduced by FM Nirmala Sitharaman. This was her 6th Budget presentation as the finance minister. The same was the final budget of the current Lok Sabha.
Just so you know, the budget that was announced recently is a temporary one. The actual budget will be announced after the elections in 2024 when a new government takes charge.
An interim budget called a short-term financial plan is shown before the general elections that shall be conducted in a new government. It could be viewed as a temporary solution to mention the expenses of the government till the new government takes office and makes a new budget.
For the whole fiscal year, the union budget is a detailed financial plan that addresses every aspect of government expenses, revenue collection, policy changes, etc.
The President in terms of Article 112 of the constitution will concerning each fiscal year cause to be laid before both the house of parliament a statement of the approximated receipts and expenses of the government of India for that year referred to as the “annual financial statement”. Receipt and disbursements are displayed under three parts in which government accounts are maintained, viz. (i) Consolidated Fund, (ii) Contingency Fund, and (iii) Public Account.
Due to the possibility of an executive change after the polls, an incumbent administration could not show the complete budget in an election year. Therefore, a temporary budget is required.
As there is no constitutional provision for an interim budget, the Center might opt to utilize the votes on account provision to recommend the Lower House to approve the funds needed for the transition period (April to July) till the following administration submits a comprehensive budget.
What Was the Previous Interim Budget?
Former Finance Minister Piyush Goyal alike presented the previous interim budget in 2019. The finance ministry was added to Goyal’s obligations because of Arun Jaitley’s poor health. He delivered the 2019–20 interim budget dated February 1, 2019.
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Although there were some important changes made to the interim budget that year by Mr Goyal, it was decided that no major policy changes would be made during this time.
Previous Interim Budget 2019 Had Certain Major Announcements
The interim budget was presented in the year of 2019 and made multiple announcements regarding various aspects of the economy and government policies:
Rashtriya Gokul Mission
For the Rashtriya Gokul Mission, One hundred and fifty crore rupees were kept. Rashtriya Kamdhenu Aayog would enhance cow productivity and output, advancing sustainable genetic upgrading of cow resources. The Aayog also manages the efficient execution of legislation and programs for the welfare of cows.
Crop Loans
When natural calamities strike, farmers are incompetent to repay their loans on crops. The Finance Minister declared, At present, the crop loans are rescheduled for these affected farmers and they receive the advantage of interest subvention of 2% just for the 1st year of the rescheduled loan.
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For all the farmers who get affected by the severe natural calamities, support shall be furnished by the National Disaster Relief Fund (NDRF), as the benefit of interest subvention of 2% and prompt repayment incentive of 3% for the entire period of rescheduling meant of their loans shall be given, as per the decision of the government.
Pradhan Mantri KIsan Samman Nidhi (PM-KISAN)
The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) to spread direct income support at the rate of Rs. 6,000 per year to farmer families, having cultivable land up to 2 hectares is announced.
Goods and Service Tax(GST)
As decided by the government, the GST load on the home buyers is to be diminished, and as per that the GST council proceeded to hire a Group of ministers to investigate and make suggestions on this concern as soon as possible. Businesses that have over 90% of GST payers will be permitted to file quarterly returns, Shri Goyal expressed.
Top Most Expectations From Budget 2024
Below are some common expectations from the Budget 2024 for taxpayers but this interim budget can’t fulfil the below expectations.
Expectations of a Home-buyers
Homebuyers wish to lift the limit of Rs. 2 lakh on rental property and raise the permissible deduction limit for interest paid on home loans to at least Rs. 3 lakh, and relax the TDS regulations for buying real estate.
Anticipations of Farmers
Post mentioning the hard measures of the government to control skyrocketing food prices last year, like prohibiting the export of rice, wheat, and sugar, cutting farmers’ incomes, economists expect the government shall furnish the farmers with more financial assistance.
Nearly 65% of India’s 1.4 billion population live in rural areas, where poor rainfall harms crops and prospects.
Expectations in the Green Sector
For green energy projects, the Finance minister’s interim Budget is anticipated to ease financing, which the renewable and new energy sectors are expecting.
