Difference Between Interim Budget and Union Budget

By BYJU'S Exam Prep

Updated on: November 14th, 2023

The difference between interim budget and union budget is that the interim budget is the Budget that Government presents during its transition period and on the other hand, the union budget is presented to notify the Government’s finances for the complete fiscal year, starting from 1st April to 31st March. Article 112 of the Indian constitution makes the President of India responsible for presenting the Interim or Union budget, whereas Article 77(3) allocates the responsibility to the Union Finance minister on behalf of the President.

Difference between Interim Budget and Union Budget PDF

Interim Budget is a budget presented just before the General elections, while Union Budget is passed without elections. The interim budget is optional, whereas the Union budget must be presented. Here, we will discuss the difference between Interim Budget and Union Budget, and thereafter we will learn about them individually.

Difference between Interim Budget and Union Budget

The main difference between the Interim Budget and Union Budget is that the Interim budget is passed before the general election, whereas the Union budget is passed in the Parliament.

Now let us try to understand the basic difference between Interim Budget and Union Budget on various factors from the table provided below:

Interim Budget vs Union Budget

Difference between Interim Budget and Union Budget

Interim Budget

Union Budget

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

It is an arrangement for the transition phase.

The Union Budget is also called the annual budget.

It is something which Central Government presents in the Parliament.

In the case of the Interim Budget, a Vote-on-account is passed.

This account does not require to be discussed in the Lok Sabha.

There is a full discussion in the Lok Sabha.

Thereafter passing of the Union Budget occurs.

The source of income will be missing from the Interim Budget statement.

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 and how the same will be used for the nation’s development.

The interim budget is submitted before the general elections for 2 to 4 months.

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

The Interim Budget only summarizes the previous year’s expenses and income.

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 social welfare measures to bring development to the country, and it will also describe the methods of fundraising through taxes.

Interim Budget and Union Budget

In the Interim Budget, the details of income and expenditure are documented for the previous year and the expenses for the coming months until the new Government comes into power are mentioned. The Union Budget, on the other hand, is a more detailed documentation of the two different parts.

What is 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. The Finance Minister presents it in the joint sitting of Rajya Sabha and Lok Sabha.

  • 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.
  • A vote-on-account is passed via interim budget.
  • The parliament issues this account to manage the expenditure.
  • For this purpose, no formal discussion is required.
  • The interim budget meaning in simple words, is that it is referred to as the temporary full budget.

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.

  • Each financial year must have a Union budget to be presented before a new fiscal year starts.
  • Union budget meaning is that it is a financial statement and a financial reform platform.
  • The union budget is prepared to help improve the country’s economic condition by equal allocation of resources, reduction in poverty and increment in the country’s per capita income.


Key Difference between Interim Budget and Union Budget

The key difference between Interim Budget and Union Budget is that Interim Budget is proclaimed right before the general elections for a duration of roughly 2 to 4 months. In contrast, Union Budget is a yearly declared budget by the Central Government introduced in the Parliament.

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