Difference between Interim Budget and Union Budget

Difference between the Interim Budget and Union Budget is explained here in detail. This topic is important from the perspective of Indian Polity Syllabus. There is no Constitutional Provision to present the Interim Budget. A petition was filed in 2019 by advocate Manohar Lal Sharma in the Supreme Court, seeking to quash Interim Budget. Union Budget is presented for the entire year and the interim budget is for a couple of months, till a new Central Government takes charge. The difference between Interim Budget vs Union Budget given here can help the UPSC Civil Service exam aspirants to understand the basics better and know their comparisons thoroughly.

Aspirants would find this article very helpful while preparing for the IAS Exam.

Difference between Interim Budget and Union Budget – UPSC Notes:- Download PDF Here

Difference between Interim Budget and Union Budget

Q) If the elections are approaching, is it mandatory to pass an Interim Budget and not Union Budget?

Answer: There is no constitutional provision to present an Interim Budget before the General elections. However, there have been 14 instances in the past when the Interim Budget was presented by the outgoing Government in the Parliament, before General elections. Recently, a petition was filed in 2019 by advocate Manohar Lal Sharma in the Supreme Court seeking that Interim Budget is quashed as there was no Constitutional Provision for an Interim Budget.

The major differences between the Interim Budget and Union Budget are:

Interim Budget Union Budget
Interim Budget is a budget presented by the Central Government just before the General elections. Union Budget is an annual budget presented by the Central Government in the Parliament. 
Vote on the account is passed without discussion in Lok Sabha Union Budget is passed after complete discussions in Lok Sabha
In the Interim Budget, the income and expenses of the previous year will be mentioned. It also mentions the expenses for a few months till the charge is taken over by the next Government. However, most importantly the sources of income will not be detailed in the Interim Budget. The Union Budget has 2 different parts, one part is related to the expenses and income of the previous year and the other part is the plan of the Government to raise funds through taking various measures and how it would be utilised for the development of the nation.
Interim Budget is during the election year, for a duration of approximately 2 to 4 months of the fiscal year Union Budget is for the entire fiscal year.
The Interim Budget has only a summary of the expenses and income of the previous year. Union Budget will have Income and expenses of the previous year would be provided in detail.
The Interim Budget will not have the component of income through the collection of taxes. The Union Budget will have a component on spending funds for various social welfare measures for the development of a country and describe the ways of raising funds through taxes. 

These are the main differences between the Interim Budget and Union Budget of India. The differences given in the above table can help the UPSC Civil Service Exam aspirants to answer any related questions easily in the exams.

After learning about the Interim Budget and Union Budget difference, it is better to know the details of Union Budget 2020, Important Economic Terms of Union Budget, major differences between Union Budget & economic survey and also facts on Interim Budget thoroughly. Visit the below-given links to learn about Union Budget 2020, Important Economic terms of Union Budget, the difference between Union Budget & Economic Survey and the facts on Interim Budget, in detail along with other information.

UPSC Civil Service Exam aspirants should diligently study the Indian Polity Notes, as it is an extremely important component of UPSC Civil Service Exam Syllabus.

Difference between Interim Budget and Union Budget – UPSC Notes:- Download PDF Here

The above details would help candidates prepare for UPSC 2021.

Frequently Asked Questions on Difference Between Interim Budget and Union Budget

Q 1. How is Interim Budget different from Union Budget?

Ans. Union Budget is an annually announced budget by the Central Government and is presented in the Parliament. Interim Budget, on the other hand, is announced right before the general elections for a duration of approximately 2 to 4 months.

Q 2. Who decides on the Union Budget?

Ans. The Central Government decides the Union Budget. It is announced in the Parliament by the Finance Minister of the country.

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