Finance Ministry begins pre-Budget discussions

  1. The finance ministry has begun the pre-Budget consultation exercise with industry bodies in the run-up to the full budget to be unveiled by the new government in July,2019.
  2. Recently,the finance Minister had presented the Interim Budget on 1st February 2019.
  3. An interim Budget or vote on account means that the government seeks the approval of Parliament for meeting expenditure for the first four months of the fiscal year (April-March) with no changes in the taxation structure.The estimates are presented for the entire year as is the case with the regular Budget.
  4. The government of the day presents an interim budget if it does not have the time to present a full Budget or because national elections may be near as propriety demands that the task of framing the full Budget be left to the incoming government.
  5. A full budget is the presentation of annual finances of the government, change in existing tax slabs, announcement of new schemes and sops for different sectors of the economy.
  6. However, in the case of an interim budget, change in tax slabs are not made and no new schemes are announced but only finance estimates are presented.Further,the incoming government has full freedom to change the estimates completely when the final Budget is presented.

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