9.1.5. Interim Budget

An outgoing government is required to present an interim budget if its tenure is about to come to an end due to impending General Elections. In such situations, the task of presenting a full Budget is left for the next government. A full Budget approves government spending for the full financial year. So for any reason, if the government of the day is not able to present in the Parliament a full budget before the end of the financial year, it requires Parliament’s sanction for expenditures till the time a full Budget is presented.

An Interim Budget gives the complete financial statement, very similar to a full Budget, albeit for a period lesser than year. It is not the same as a 'Vote on Account'. While a 'Vote on Account' deals only with the expenditure side of the government's budget, an Interim Budget is a complete set of accounts, including both expenditure and receipts.

While the law does not debar the Union government from introducing tax changes, successive governments have avoided making any major changes in income tax laws during an Interim Budget.