Finance minister Nirmala Sitharaman will present the Union budget 2024 on February 1, 2024. It will be an interim budget as the Lok Sabha elections are due early this year

Finance Minister Nirmala Sitharaman is expected to unveil on February 1. Because of the impending Lok Sabha elections, this budget is expected to be an interim one, representing a short-term financial plan created by the federal government.

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Until a new administration gains power, an interim budget acts as a temporary solution to cover spending demands. Its major purpose is to provide funding for programs, necessities, and urgent needs of the government while concentrating on preserving stability until the next administration develops a full budget.

The difference between a Vote on Account and an interim budget is noteworthy. The former is debatable, comprises both receipts and expenses, and has the ability to suggest modifications to the tax code. A Vote on Account, on the other hand, is passed without debate, deals only with government spending, and has no power to change taxes.

The Union Budget, which is a financial plan authorized by parliament, is essential for taking money out of the Consolidated Fund of India, including loans and revenue. The budget statement serves as a road map for the next fiscal year by projecting income and expenses.

An economic survey, created by the Department of Economic Affairs’ Economic Division, provides information on the state of the nation’s economy prior to the budget presentation. To set the stage for the budget, this survey also describes important policy objectives and development programs.

The finance bill, an annual piece of law outlining specific tax specifics, is an essential part of the Union Budget. Before becoming law, it is discussed in both the Rajya Sabha and the Lok Sabha.

Six months before to the budget’s presentation, ministries, states, and other stakeholders are consulted throughout the preparation process for the Union Budget. Pre-budget meetings are organized by the finance ministry to collect requirements and proposals from different sectors.

Before the presentation, the customary halwa ceremony, which represents unity within the finance ministry, finishes the budget-making process. During the budget session, the finance minister lays forth the main themes and starts the conversation in Parliament, which eventually results in both houses’ final approval and the president’s support.

Based on income or profits received, direct taxes are imposed, such as corporation tax, capital gains tax, and income tax. Conversely, indirect taxes are levied on the use of products and services and include things like VAT, excise tax, service tax, custom and stamp charges, and entertainment tax.

The Union Budget is essentially a detailed financial road plan that is developed to guide the country through its economic journey while striking a balance between revenues, expenditures, and the needs of its population.