Difference between Interim Budget and Union Budget

By : Neha Dhyani

Updated : May 18, 2022, 5:25

The interim Budget is the Budget that Government presents during its transition period. On the other hand, the union budget keeps a record of the Government's finances for the fiscal year, from 1st April to 31st March.

To analyse the Difference between Interim Budget and Union Budget, it is first important to understand them separately.

What is an Interim Budget?

The Central Government presents the Interim Budget when it does not have time to present a full budget as the general election is about to happen.

It contains detailed documentation of every expense and income through taxes for the coming few months, i.e. till the new Government is in place.

What is Union Budget?

The Union Budget, mentioned in Article 112 of the Constitution of India, is the statement of the Government's estimated income and expenditure for that particular year.

It is also known as the annual financial statement.

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Difference between Interim Budget and Union Budget

Now let us try to understand the basic Difference between Interim Budget and Union Budget -

Interim Budget

Union Budget

It is just before the general election, and when the Central Government do not have much time to present a full budget, then it passes the Interim Budget

It is an arrangement for the transition phase

The Union Budget is the annual budget that the Central Government presents in the Parliament

In the case of the Interim Budget, a Vote on the account is passed without any discussion in the Lok Sabha

There is a full discussion in the Lok Sabha before the passing of the Union Budget

In the Interim Budget, the details of income and expenditure are documented for the previous year and the expenses for the few coming months till the new Government comes into power are mentioned

However, the source of income will be missing from the Interim Budget statement

The Union Budget, on the other hand, is a more detailed documentation of the two different parts

One part is related to the Government's previous year's income and expenses and the other part details the plan of the Government on how it will raise funds through different measures and how the same will be used for the development of the nation

The interim budget is presented before the general elections for a period of 2 to 4 months of the fiscal year

Union Budget, on the other hand, being the primary fiscal statement of the Government, is for the entire fiscal year

In the Interim Budget, only a summary of the previous year's expenses and income are mentioned

Union Budget accounts for detailed information about the previous year's expenses and income

In the Interim Budget, the component of income through taxes is not included

The Union Budget will have a component of how Government will spend on various social welfare measures to bring development to the country, and it will also describe the methods of fundraising through taxes

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Thus, you can say that the Interim Budget is the budget that Government presents during its transition period. The Finance Minister presents it in the joint sitting of Rajya Sabha and Lok Sabha. In contrast, the Union budget records the Government's finances for the fiscal year, from April 1 to March 31.

It is important to understand the Difference between Interim Budget and Union Budget to avoid confusion and gain more general knowledge.

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FAQs on the Difference between Interim Budget and Union Budget

Q1. What is the Difference between Interim Budget and Union Budget?

The Difference between Interim Budget and Union Budget is that the union budget is the annual financial report announced by the Central Government and presented in the Parliament of India, whereas the interim budget is an in-between arrangement that is presented before the general election.

Q2. What is the Difference between Interim Budget and Union Budget regarding the time of announcement?

The Difference between Interim Budget and Union Budget in terms of the time of the announcement is that the Interim Budget is a provisional budget which the Central Government announces before the general election if it feels the need for the same, whereas the union budget is an annual financial budget that is announced every year.

Q3. How to identify the Difference between Interim Budget and Union Budget in terms of their effectiveness?

The Difference between Interim Budget and Union Budget in terms of their effectiveness is that the interim budget is for a period of 2-4 months, while the union budget is for the entire fiscal year.

Q4. Concerning the Difference between Interim Budget and Union Budget, when are they presented?

The Difference between Interim Budget and Union Budget in terms of when they are presented is that the Union Budget is presented on February 2, whereas the Interim Budget has no specific date.