An interim budget and a full budget are both significant financial documents, but they serve different purposes and are presented at different times during the financial year.
- Interim Budget:
- An interim budget is presented by the government when it is preparing for elections or undergoing a transition phase. It typically covers the government’s expenses and revenues for a short period until a new government is formed and a full budget can be presented.
- The interim budget essentially serves as a temporary financial plan to ensure that the government can continue functioning smoothly until the next full budget is presented.
- The interim budget usually doesn’t introduce major policy changes or new schemes since its primary purpose is to maintain continuity rather than implement significant reforms.
- It includes estimates of government revenue and expenditure for the remaining part of the financial year until a new government takes office.
- Full Budget:
- A full budget, also known as the annual budget or the regular budget, is presented by the government every year, usually in the beginning of the financial year.
- The full budget outlines the government’s comprehensive financial plan for the upcoming fiscal year, detailing its revenue projections, expenditure allocations, policy initiatives, and economic priorities.
- Unlike the interim budget, the full budget can introduce new policies, schemes, tax changes, and other significant fiscal measures aimed at achieving the government’s economic and social objectives for the year.
- It undergoes thorough scrutiny and debate in the parliament before being passed, as it sets the financial framework for the entire fiscal year.
In summary, while both the interim budget and the full budget are important financial documents, the interim budget serves as a temporary measure during transitional phases, while the full budget provides a comprehensive financial plan for the upcoming fiscal year.