An Interim Budget in the Indian context is a temporary financial plan presented by the government when general elections are near, and a full Union Budget cannot be introduced. It allows the current government to manage essential public expenditures for a few months until a new government takes charge and presents the full-fledged annual budget.
Unlike a regular Union Budget, which outlines detailed plans for revenue and expenditure for the entire financial year, an Interim Budget focuses mainly on vote-on-account provisions. This enables the government to withdraw funds from the Consolidated Fund of India to continue day-to-day operations such as paying salaries, pensions, subsidies, and interest payments. It does not usually include major policy changes or new tax proposals.
For small business owners, startups, and entrepreneurs, understanding the Interim Budget is crucial, as it may still include temporary tax measures, sectoral allocations, or compliance guidelines that can affect short-term financial planning, GST return timelines, or TDS deductions. However, substantial changes to tax slabs, business incentives, or regulatory frameworks are typically deferred until the full budget is announced.
If you’re planning your tax filings or assessing your income tax liability during an interim budget period, it's wise to stay updated on any provisional measures introduced. You can explore tailored guidance and solutions at FinTax24’s income tax services, where expert support is available for both individuals and businesses.
In essence, the Interim Budget ensures continuity in government functioning without making long-term financial commitments, offering a stopgap fiscal solution until a new administration is in place.