Budget vs Interim Budget: Know difference

1. Budget: A budget, also known as the annual budget or full-year budget, is a comprehensive financial plan that outlines the government's expected revenues and expenditures for the upcoming fiscal year. It is typically presented by the government at the beginning of the fiscal year and covers a full 12-month period.

The budget is prepared based on the government's policies, priorities, and economic forecasts, and it requires approval from the legislature before it can be implemented. The budget allocates funds for various government programs, services, infrastructure projects, and other expenditures, as well as outlines the sources of

revenue, such as taxes, duties, and borrowing. Once approved, the budget serves as a roadmap for government spending and revenue collection for the entire fiscal year. 2. Interim Budget: An interim budget, also known as a vote-on-account, is a temporary budget presented by the government when general

elections are imminent or when the current government's term is coming to an end. It is presented shortly before the expiry of the current fiscal year and is intended to provide continuity in government spending until a new government is formed and a full-year budget can be presented.

The interim budget typically covers a short period, often a few months, until the new government takes office and prepares a full-year budget. Unlike a full-year budget, an interim budget focuses mainly on maintaining essential government functions and services without introducing major policy changes or new expenditures.

The interim budget usually includes allocations for ongoing expenses, debt servicing, salaries, pensions, and other essential expenditures, but it does not make significant changes to tax rates or introduce new spending initiatives.