This will be BJP goverment’s last budget on February 1 before the upcoming Lok Sabha elections, which will be held in April-May this year.
The Union finance ministry has issued a clarification that the budget will be called interim budget amid media reports and speculation that the government could present a full budget.
Union minister Piyush Goyal, who has been temporarily been given charge of the finance ministry in view of Arun Jaitley’s indisposition, will present the interim budget.
An interim budget is the budget of a government that is going through a period of transition.
It is quite similar to a full-budget as the government presents expenditure for the ongoing fiscal and projections for the upcoming fiscal year through it. An interim budget is a complete set of accounts, including both expenditure and receipts, and gives the complete financial statement.
The Union government can introduce tax changes but during an election year, successive governments have avoided making any major changes in income tax laws during an interim budget.
An interim budget is presented by a government if it does not have the time for a full Budget or because the general elections are to be conducted shortly. So traditionally, in an election year, the outgoing government presents an interim budget. The task of framing the full budget is left to the incoming government.